Government goes to market with 2013 bond

The Jamaica Government goes to the market between today and next Monday to raise an unlimited amount of money from the re-opening of a variable rate benchmark investment note set to mature in August next year.



The funds will be used to finance the Government's budgetary requirements, according to the term sheet.



The bond will be floated at the original coupon of 7.22 per cent.



It will pay interest every three months and at each interest payment date the coupon will be reset at 1.00 percentage points above the existing three-month Treasury bill rate.



The first interest payment becomes due and payable on May 5, 2012. Thereafter, interest payments will become due and payable on August 5, November 5, February 5 and May 5 until maturity on August 5, 2013.



The bond was originally issued on August 5, 2011 and since then has raised a total of J$20.86 billion.



Brokers surveyed said that they anticipate a good take up, with one putting a quote of between J$6 and J$7 billion.



A fixed rate bond maturing in 2015 was also scheduled to be re-opened today, but that has not materialized.



marcella.scarlett@gleanerjm.com