Finance Minister Fayval Williams
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Kemon White reports
Jamaica has raised US$1 billion on the international capital markets, securing the lowest interest rate in the country's history of international market borrowing.
The transaction, completed Thursday, is Jamaica's first US dollar denominated bond issue in more than a decade and its first benchmark transaction since Hurricane Melissa in October last year.
The new bonds carry an interest rate of 6.25 per cent and were oversubscribed by about two and a half times, reflecting strong demand from international and local investors.
The issue forms the second phase of the government's strategic debt management operation launched earlier this month.
Under the first phase, holders of three existing global bonds were invited to sell their holdings back to the government.
Tenders totalling US$491.1 million were received.
The government says the new $1 billion issue will finance those repurchases, with the remaining proceeds to support the 2026-2027 budget.
Finance Minister Fayval Williams says the strong investor response demonstrates confidence in Jamaica following the devastation caused by Hurricane Melissa.
The government says the transactions are part of its continuing efforts to manage the national debt by extending the maturity of its obligations, reducing near-term refinancing risks and lowering interest costs.
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