THA to issue $300m bond in 4-6 weeks

IN the next four to six weeks, the THA anticipates that the $300 million bond approved to fund some capital expenditure projects will go to market.

At last Wednesday’s post Executive Council media briefing, Deputy Chief Secretary and Secretary of Finance and the Economy Joel Jack said First Citizens was selected as the arranger and the THA is in the process of preparing the necessary legal documents as the matter is finalised.

In September 2019, the Cabinet sought and obtained approval for the THA to issue a bond on the domestic market in the amount of $300 million for capital works.

Jack said, “During this covid19 pandemic, we have had to adjust our timelines slightly and we continue to work with our bankers to closely monitor the financial market to determine the best time to issue the bond. Within the next four to six weeks the Assembly anticipates that the bond would be going to market.”

Jack said after the Assembly’s annual rating exercise by Moody’s investor services earlier this year, an updated credit opinion was issued by Moody’s for TT, resulting in a revision of the credit rating and also reaffirming the credit rating of BA1 stable for TT with a change in the outlook from stable to negative.

“The Assembly’s rating as a sub-sovereign with most of our revenues coming from the sovereign, our rating was also reaffirmed by Moody’s as BA1, but the outlook was changed... This was done to reflect the current rating of the sovereign.”

He said it was important to note that Moody’s has highlighted some of the credit strengths of the THA “in that we continue to maintain positive operating margins, we also have balance consolidated financial results, we have low debts and as well strong liquidity.”

Jack said the rating agency also highlighted its expectation and confidence that the Assembly would continue in this vein in the medium term and the immediate future.

“Following this annual exercise, we are also heartened as we continue to open the Assembly’s operations to scrutiny. Let me give the people of Tobago the commitment that we would continue as an Assembly and this administration will continue in our financial responsibility to manage the finances of the Assembly in a very prudent manner, as we have done in the past since 2001.

“Even during this covid19 pandemic and post-covid19, we would continue to ensure that the measures that we will implement would be both targeted and comprehensive as we confront this pandemic.”