Caption: Dave Tancoo
By Prior Beharry
FINANCE Minister Davendranath Tancoo says Trinidad and Tobago’s successful return to the US capital market with a US$1 billion, ten-year unsecured sovereign bond at a 6.4 per cent interest rate signals strong investor confidence in the country and the UNC-led Kamla Persad-Bissessar administration.
The bond, announced on January 22 and issued under New York law, was arranged and managed by J.P. Morgan and Bank of America.
Speaking at the a press conference at the UNC headquarters in Chaguanas on Sunday, Tancoo said it was immediately oversubscribed by about two and a half times, attracting more than 140 orders and drawing interest from 144 “unique” investors.
Tancoo said the borrowing was used to refinance a US$1 billion external bond issued in 2016 to support the country’s development programme, but criticised former finance minister Colm Imbert, claiming the previous administration had no clear plan to repay it and mismanaged the funds. He argued the new notes are superior, citing what he described as improved terms and a stronger investor base.
Among the benchmarks he highlighted, Tancoo said the order book reached about US$2.4 billion despite “two negative ratings outlooks,” and that pricing tightened by 20 basis points from initial price thoughts to launch. He also said the transaction extended the country’s external debt maturity profile, increasing the average life from 4.1 years to 6.3 years, and fully addressed the August 2026 US$1 billion maturity. He added that the bond priced tighter than the country’s original 2016 issuance, citing a level of 54.6 basis points.
Tancoo also compared the deal to recent regional issuances, saying Trinidad and Tobago secured a lower coupon than the Bahamas’ June 2025 ten-year US$1.67 billion bond at 8.25 per cent, Barbados’ 2025 US$500 million bond at 8 per cent, and the Dominican Republic’s 12-year US$2 billion bond at 6.9 per cent. “International investors continue to place TT in a higher quality bucket,” he said.
S&P Global Ratings in October reaffirmed Trinidad and Tobago’s BBB- credit rating but revised its outlook from stable to negative.
Looking ahead, Tancoo said the government plans to meet its bond obligations by closing an estimated $10 billion tax gap and increasing energy-sector revenues through arrangements involving companies including EOG, ExxonMobil, bpTT, Shell and Perenco. He also said Gulf states and China have expressed interest in investing in the government’s Revitalisation Blueprint, which includes 11 major infrastructure projects over the next decade.
Tancoo said the administration expects those measures to generate sufficient foreign exchange to repay the bond when it falls due in fiscal 2026.
