By Paul Kilby
NEW YORK, June 11 (IFR) - Jamaica is readying investor meetings in Europe and the US through Citigroup, according to an investor.
The Caribbean nation, rated Caa2/B/B-, will see accounts in Los Angeles on June 16, in New York on June 18, in Boston in June 19, in London on June 22, in Germany on June 23 and in Amsterdam on June 24.
Meetings are being as described as a non-deal roadshow, but markets have been expecting the sovereign to raise funding to retire a PetroCaribe loan owed to Venezuela.
The idea is to replicate a transaction earlier this year from the Dominican Republic, which used proceeds from a bond sale to pay just US$1.93bn on US$4bn of debt owed to Venezuela state-owned oil company PDVSA.
For Jamaica, the success of a similar transaction will depend on the cost of bond financing and how much of a discount Venezuela is will to give.
"I suppose the roadshow is to figure out what kind of tenor and yield they can get," said the investor.
The sovereign is seen as an improving credit story. S&P upgraded the sovereign to B from B- earlier this month.
However, the government's choice of tenor may prove tricky should it decide to return to the international bond markets, given the number of maturities it has due between 2019 and 2025.
It already has outstanding 10.625% 2017s, 8% 2019s, 8.5% 2021s, 11.625% 2022s, 7.625% 2025s and 9.25% 2025s. This doesn't include other state-controlled entities such as NROCC, which also has a 9.375% 2024.
"They can't issue a 10-year, as they have so many maturities around then," the investor said. (Reporting by Paul Kilby; Editing by Marc Carnegie)