Posted on

$125m bond offer


Shawn Cumberbatch

$125m bond offer
Governor of the Central Bank Cleviston Haynes (FILE)

Social Share

Barbadians’ appetite for investing in Government securities is being tested three years after the domestic debt restructuring cost local bondholders millions of dollars in losses.

The Central Bank has issued a new $125 million treasury note, and Governor Cleviston Haynes is hopeful that local pension plans, other institutional investors and individuals buy the new bonds.

With Government having relied heavily on foreign borrowing as economic activity collapsed during the pandemic, he said the bonds were being sold to help “finance the economic recovery from the COVID-19 shock”.

Haynes also wants pension plans to invest more of their funds in Barbados in other areas, including environmentally-friendly instruments like green bonds, as part of their contribution to domestic economic activity.

The new bond offer opened on Monday, has an interest rate of 4.25 per cent and will mature in 2026. The notes are available from $1 000 and up and will be issued on December 1. (SC)

Subscribe now to our eNATION edition for the full story.

For the latest stories and breaking news updates download the Nationnews apps for iOS and Android.