With the recent successful placement of a bond in the international capital markets, the Jamaican government is set to receive a substantial sum of US$480 million. This strategic move marks the government’s first structured securitisation transaction, allowing them to shift their focus towards vital infrastructure projects for the country’s development.
Key Points:
- The bond, originally set at US$440 million, was upsized to US$480 million with a 12-year term and 6.75% interest rate.
- The Ministry of Finance expressed their enthusiasm for the accelerated investments in domestic infrastructure while simultaneously reducing the national debt burden.
- Issued through Kingston Airport Revenue Finance Limited, also known as KingAir, this bond does not impose any debt obligations on the Jamaican government or its agencies.
In their efforts to leverage the Norman Manley International Airport’s revenue securely, the government granted KingAir rights to 52.33% of the airport’s profits in exchange for the US$480 million raised through the bond issue. This strategic move translates to approximately $76 billion in local currency, a significant boost for Jamaica’s economic advancement.
Ratings from Standard & Poor’s Global Ratings and Moody’s have further solidified the credibility of the bond, receiving a BB and Ba1 rating respectively. This marks a milestone in the country’s financial sector, paving the way for sustainable growth and development opportunities.
In conclusion, the successful placement of this bond not only positions Jamaica for enhanced infrastructure and economic advancements but also signifies a strategic step towards reducing the national debt burden. This initiative underlines the government’s commitment to fostering growth and prosperity for all Jamaicans.
