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Govt move to raise money hits a snag

Albert Brandford

Govt move to raise money hits a snag

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Cash-strapped?Barbados’ efforts to raise urgently needed money on the international markets have suffered a major setback with its withdrawal of a bond tender offer and buyback for up to US$250 million (BDS$500 million).
There was no official statement from Minister of Finance Chris Sinckler on the decision announced on Wednesday that effectively stymied the plan to use the money to shore up foreign reserves, provide budgetary support to fund the deficit, finance fiscal operations, and improve and extend the external debt maturity profile.
Government had been granted parliamentary approval to seek the take-up of an issue of US$500 million worth of bonds through Deutsche Bank Securities Inc., lead manager, which would underwrite the risk, with CIBC World Markets Corp acting as co-manager.
But it had only sought half that amount in the initial tender offer on?September 23, to buy back for cash its 7.25 per cent notes due in 2021 and the 7 per cent notes due 2022, and together with outstanding notes in a aggregated principal not exceeding US$250 million.
That offer was to expire at 11:59 p.m. on September 30, but Government elected to extend the time to 11:59 p.m. on October 1.
Subsequently a press release said: “The Government has elected to withdraw the tender offer and not accept for purchase any outstanding notes tendered pursuant to the tender offer.”

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