PORT OF SPAIN, Trinidad, CMC—The Trinidad and Tobago government says it has raised US$750 million on the international capital market “without difficulty” following a nine-hour virtual roadshow targeting 53 of the “most prestigious asset managers” in the United States and Europe.
Finance Minister Colm Imbert said that the roadshow on Tuesday involved “ intense scrutiny and questioning by international investors …on our credit rating, our country’s financial situation, diversification, revenue and expenditure, prospects for oil and gas production, foreign exchange inflows and interventions,” among other concerns.
Finance Minister Colm Imbert
Imbert said that a Trinidad and Tobago government bond with a prospective offer size of US$750 million was launched on the Bloomberg Electronic Platform with an initial rate in the high six percent range.
Less than three hours later, he closed the Book on the Bond after “we had received offers totaling US$2.1 billion, an oversubscription of 280 percent.
“This tremendous success was achieved by the Ministry of Finance with the solid work and assistance of our Sole Lead Manager/Book Runner for this international Bond, J. P. Morgan, in just two and a half hours, “ Imbert said, adding that after assessing the quality of the offers, and allocating the bonds to various investors, the 10-year Trinidad and Tobago Bond was finalized for US$750 million.
He said it is being offered at an interest rate of 6.4 percent, just about two percent above Tuesday’s opening rate of 10-year US Treasury Bills.
“It is noteworthy that the interest rate of 6.4 percent over ten years achieved by the Ministry of Finance … is much better than could be achieved by most countries in Latin America and all of CARICOM (Caribbean Community).
“Colombia, for example, has a spread of 6.5 percent over US treasuries today, meaning that they would have to borrow at 10.8 percent if they approached the international market today. Mexico’s spread over US treasury bills is 6.25 percent today, which means they have to borrow at 10.55 percent,” Imbert said.
He said that the “excellent performance of our US$750 million international bond offering … is confirmation the confidence that the international financial community has in the Ministry of Finance and the Government of Trinidad and Tobago,” Imbert added.
and then 