In a historic move, Jamaica has launched the first ever Jamaican Dollar-Linked instrument on the International Capital Markets.
The International Bond was launched on November 3, in the amount of 46-point-6 billion Jamaican or 3-hundred million US Dollars.
Chevon Campbell tells us more.
The issuance, which was oversubscribed by one-point-four times, consists of Senior Unsecured Notes due 2030 which are registered with the Securities Exchange Commission in the United States.
This opens local currency debt issues to international investors .
The government says this will help to effectively reduce the GOJ’s exposure to USD denominated debt, as interest and principal payments are linked to the value of the Jamaica dollar.
The landmark offering achieved an international investor participation of 93-point-5 per cent of all participants with 6-point-5-per cent coming from domestic investors.
This Jamaica Dollar linked bond issue marks Jamaica’s first return to the international capital markets since 2019.
Minister of Finance Dr. Nigel Clarke says this kind of deal would be unimaginable only five years ago.
Dr. Clarke says the development represents a substantial policy dividend emanating from Jamaica’s improved macro-economic fundamentals.
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