Minister of Finance and the Public Service Audley Shaw says that market analysts have marvelled at the high level of oversubscription of the Government’s most recent external bond issue.
According to Shaw the analysts were not only astonished by the fact that it was 3.8 times the take-up, but also that the “historic” yields were equivalent to rates that apply to investment-grade issuers.
The yields were five per cent on bonds due in 2028 and 6.45 per cent on those bonds due in 2045.
“These are historically the lowest yields that the Government of Jamaica has been able to secure for long maturity global bonds,” Shaw told a press conference at his ministry, National Heroes Circle, Kingston, yesterday.
He explained that the intervention in the bond market was fully in concert with the overarching efforts to reduce the national debt and extend maturities.
“This is a resounding vote of confidence in the ongoing work to maintain macroeconomic stability and to reform the Jamaican economy,” Shaw stated.
He noted that it included fundamental changes in: the independence of the Bank of Jamaica; exchange rate flexibility; public sector transformation; and reduced red tape for business activity.
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