NEW YORK, Aug 10 (IFR) - Jamaica set initial price thoughts of 7% area on a tap of its 8% 2039 amortizing US dollar bond that will finance the buyback of short-dated notes, according to market sources.
The Caribbean nation, rated Caa2/B/B, is yet to determine the size of the reopening, which is expected to price on Thursday.
The 2039s, of which the sovereign has US$500m outstanding, amortize in three equal installments over their last three years to maturity.
In a tender offer announced on Tuesday, Jamaica has offered to buy back the 10.625% 2017 bond at a price of 108.00 and the 8% 2019 at 110.50.
Bank of America Merrill Lynch and Citigroup are the bookrunners on the new issue and dealer managers on the tender offer, which expires on Thursday. (Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)