NIF bonds now listed on Stock Exchange

The National Investment Fund Holding Company Limited has been listed on the Trinidad & Tobago Stock Exchange.

The NIF bond, which the Government reported had raised $4 billion, was oversubscribed after it was offered to public in July. Following today's ceremony it was placed on the stock bond market of the TTSE.
This listing allows the opportunity for those who failed get their hands on the NIF bonds during the public offering a second chance to obtain them.

However, this will depend on the willingness of the current owners of the bonds to sell them so early on.

"Oversubscription means there was a surplus of demand. If you have a surplus of demand and there are persons who have gotten access to the bond and they are prepared to sell then you would have the potential for trades to take place. That is essentially the dynamic we are looking forward to," Deputy Chairman of the T&T Stock Exchange said during the ceremony at Nicholas Towers, Port-of-Spain.

Narine admitted that they had seen instances previously where bond owners were unwilling to sell, leaving the market stagnant. However, he said he believed the varying tiers of the NIF Bond may encourage activity.

The NIF Bond, which includes stocks in Republic Financial Holdings Limited, One Caribbean Media Limited, West Indian Tobacco Company Limited, Angostura Holdings Limited and Trinidad Generation Unlimited, were initially offered as five-year, 12-year and 20-year packages.

"For the NIF bond there are different tranches. We have five, we have 12, we have 20. There may be someone in the five that may want to migrate to the 12. That may provide someone wanting to sell,” Narine said.

“There is a dynamic at play that is unique that we did not have before. One is the oversubscription, two is the size, three is the different tenors. Within those three parameters there is quite the opportunity for secondary market trading." 

 - by Peter Christopher

The NIF bonds pay 4.5% per year over five years, 5.7% per year over 12 years and 6.6% per year over 20 years.

The listing went live at 9.30 am today and the price of the stock bond will be determined by market activity.

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