UPDATE 1-Jamaica announces new long-dated bond, tender offer

martes 9 de agosto de 2016 13:32 GYT
 

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By Paul Kilby

NEW YORK, Aug 9 (IFR) - The Government of Jamaica on Tuesday announced plans to issue a new long-dated bond as part of a tender offer for its outstanding 2017 and 2019 bonds.

The sovereign is offering to buy back the 10.625% 2017 bond at a price of 108.00 and the 8% 2019 at 110.50.

Those securities were trading at 106.50-109.00 and 107.80-108.80 respectively on Tuesday, according to Thomson Reuters data.

The Caribbean nation was last in the market in July 2015 when it raised US$2bn through a dual-tranche bond that helped it retire debt owed to Venezuela at a cheap discount.

The bonds issued during that offering - due in 2028 and 2045 - have rallied considerably since being placed last year.

The yield on the 6.75% 2028 has shrunk to around 5.35%, down from a 2016 peak of 7% on January 21, according to Thomson Reuters data.

The tender will expire on August 11, with Citigroup and Merrill Lynch acting as dealer managers. (Reporting by Paul Kilby; Editing by Marc Carnegie and Shankar Ramakrishnan)