Finance Minister hits the road to sell US$1 billion in bonds on international market

Wednesday, June 15, 2016 - 20:00

Finance Minister Colm Imbert will leave the country next month in a bid to sell US$1 billion in bonds to financial institutions in the United States.

The Minister told today's post-Cabinet meeting that he was going to visit several cities, including New York and perhaps Los Angeles, to engage financial institutions there.

He will be accompanied by officials of the Ministry of Finance and they will market the economy of this country to the institutions.

He said the last time this was done was two years ago under the previous government, which managed to raise US$500 million dollars.

The Minister said he is confident of his and the government's ability to successfully sell this country to be able to raise the funds.

He believes that given the current situation regarding energy prices, the interest rate on the bonds would be a little higher than the ones sold in 2014.

So far, the Minister says, the Government has been able to raise $3 billion in bond sales on the local market.

The first tranche of $1 billion was over-subscribed, with a demand for a total of $1.8 billion.

The government eventually sold $1.1 billion at an interest rate of 4.75%.

The second bond sale of $2 billion was sold at an interest rate of 4.5%.

The Minister also reiterated that the Government has no intention of further dipping into the Heritage and Stabilisation Fund for the rest of this financial year unless it becomes absolutely necessary.