TRINIDAD and Tobago has successfully returned to the debt capital market after three years with an over-subscribed US$560 million bond.
This was stated in a release by the Ministry of Finance on Wednesday. It stated that the bond was over subscribed by three times.
The Ministry stated, “On Monday, September 11th, 2023, the Government of the Republic of Trinidad and Tobago, through the Ministry of Finance, successfully issued US$560 million Senior Unsecured long 7-year Notes at a coupon of 5.950% on the International Capital Market. The offer was oversubscribed by 3 times the amount required.”Scotiabank and JP Morgan acted as Joint Lead Managers and Bookrunners for the transaction, the release noted.
The release stated, “This was in tandem with the Republic of Trinidad and Tobago’s announcement on September 5th, 2023, of the commencement of a Cash Tender Offer to purchase any and all of the outstanding US$550 million aggregate principal amount of its 4.375% Notes due 2024.
“The marketing strategy for the transaction consisted of group investor calls beginning on September 5th in which the Honourable Colm Imbert, Minister of Finance met with thirty-six (36) potential international investors.
“In addition, a virtual roadshow presentation was made available to investors, garnering participation from ninety (91) different accounts.”
The release stated that key nvestors consisting of mostly asset managers based in North America, displayed significant appetite for the Republic’s offering and enabled the Republic to place the bond with international investors based in North America (71%) and Europe, Middle East, and Africa (27%), as well as Latin America and Asia. Asset managers purchased 79% of the issue, followed by pension funds with 15%, insurance companies 3%, and banks 2%, as well as other investors 1%.
It stated, “The positive feedback received from investors and solid order book momentum allowed the Republic to launch and price the transaction at 5.950% for US$560 million Notes due 2031 at a spread of 170 bps or 1.7% over the current rate of US 7-year Treasury Bills, which traded at 437 bps or 4.37% on Monday, before discount.”
