T&T Govt Secures US$1.0Bn 10-Year Bond

• Trinidad and Tobago has successfully raised US$1.0Bn through the issuance of a new ten-year international bond, set to mature in January 2036, according to information released to investors.
• The bond carries a coupon rate of 6.50%, with interest payable semi-annually, and was sold at a discount to face value, meaning investors are expected to earn a slightly higher overall return.
• The bond, denominated in US dollars, is unsecured and backed by the Government’s general ability to meet its debt obligations rather than specific assets. A legal notice issued on January 12 confirmed that JP Morgan Securities LLC and Bank of America Securities Inc were appointed as joint lead managers and arrangers for the issuance.
• The bonds were issued under the External Loans Act, which authorises the Government to raise funds internationally for general development purposes and repayment of existing debt. The issuance comes as the Government addresses elevated financing needs this year.
• Last September, international ratings agency S&P Global Ratings revised T&T’s outlook from stable to negative, noting the Government faced an amortising US$1 billion bond due in summer 2026.
• However, the Government launched a cash tender offer last week to repurchase its outstanding US$1 billion in 4.5% notes due August 4, 2026, ahead of the stated maturity date.

(Source: Trinidad Express)