Gov’t Opens Three Bonds Valued at $22 Billion

The Government of Jamaica has reopened three local bonds valued at $22 billion with varied maturation dates. That’s according to notices issued by the Bank of Jamaica, last Friday.

It’s uncertain the purpose of the instruments at this time.

Nora Gaye Banton tells us more.

The smallest of the bonds valued at $6 billion will mature over a three year and two month period.

Half yearly interest payments will begin on March 21, 2025. The payments will be subject to a 10 per cent per annum fixed interest rate.

The final maturity date is March 28, 2028, with a minimum bid amount of $1,000.

The $7 billion offering will mature in March 2037, with a similar half yearly interest rate scheme at 10 per cent per annum.

The largest of the bonds at $9 billion has the longest maturation period set at December, 2050. It also has slightly better half yearly interest rate payments at 12.25 per cent per annum.

All three bonds have subscription dates beginning on January 15. The settlement dates are set on January 17.

Efforts to get a comment from Finance Minister Fayval Williams were unsuccessful.

However, financial analyst and chartered accountant, Dennis Chung, believes the funds will most likely be used to retire other instruments or convert expensive foreign denominated bonds into local currency.