GOJ floating two bonds
Published:Wednesday | February 22, 2012 | 12:00 AM
The Finance Ministry is floating two bonds this week to mop up liquidity from the J$62 billion of interest payments maturing debt to be paid out on Friday.
The ministry had initially planned one fixed rate bond issue this week, but said it would offer two instruments instead, saying it was "cognisant of market appetite" and has "developed securities that the public would actively participate in as well as being able to raise adequate financing at minimal cost".
The offer for fixed rate bond, which had a limited offer of J$4 billion, closed at midday on February 21.
It pays interest semi-annually at a rate of 7.20 per cent.
A variable rate bond will be placed on the market from February 23-27 for unlimited subscription.
The initial coupon rate of 6.57 per cent - the same as the current six-month Treasury bill rate - will apply to interest payments up to August 24, 2012.
The bond pays interest semi-annually thereafter at 1.375 percentage points above the prevailing six-month Treasury bill rate.
The VR bond matures in eight and a half years years on August 24, 2020, while the FR bond matures in three years on February 24, 2015.