Imbert: Successful US$500m international bond issue

FINANCE Minister Colm Imbert on Monday announced that the ministry achieved a very successful US$500 million Republic of TT International Bond Issue. The US$ 500 million, ten-year bond offer was launched by Credit Suisse internationally at 8:30 am on Monday, with an initial interest rate in the vicinity of 4.75 per cent.

In a statement issued by his ministry, Imbert declared, "By 12.15 pm, three hours and 45 minutes later, the bond offer had been oversubscribed by 219 per cent. A total of US$1.66 billion was received in offers from a wide range of high quality international investment firms, investment funds and investment banks."

Imbert continued, "The offer book was eventually settled at US$500 million at an interest rate of 4.5 per cent, the same rate as previous bond issues at earlier times when our fiscal situation was much better than it is at this time."

Imbert said it was a tremendous achievement on the part of his team at the ministry that in the midst of the very challenging covid19 pandemic, with depressed oil and gas prices, and all of the economic difficulties associated with the public health restrictions, that "the Government was able to successfully issue a 10-year US$500 Million Bond with high quality investors, in less than four hours on the international market at an interest rate of 4. 5 per cent.

He also said the success of the bond issue is due in no small measure to the successful attainment by the ministry of good international credit ratings within the last two months in the face of the economic fallout of the pandemic.

Imbert added, "It is also testimony to the confidence reposed by the international financial community in the management of the country’s finances under the present leadership at the Ministry of Finance."

He thanked Credit Suisse and its local partner First Citizens Bank, who were selected as the joint lead managers for this transaction,for being able to successfully complete this significant international financing bond issue in less than one business day. He added the selection of Credit Suisse and FCB as joint lead managers was done through a rigorous competitive bidding process.