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  • 2 days ago
Finance Minister Davendranath Tancoo is in New York this week leading Trinidad and Tobago's latest Eurobond road show, as the Government prepares to tap international markets in a bid to raise up to one billion US dollars.
Transcript
00:00Finance Minister Devintranath Tankoo is in New York for a euro bond roadshow,
00:06part of the government's efforts to raise international financing through the issuance of debt securities.
00:13We contacted the minister today who confirmed the process is underway.
00:18Trinidad and Tobago issues euro bonds, which are U.S. dollar denominated debts sold on international capital markets
00:26to fund public expenditure and refinance maturing obligations.
00:31The country has recorded significant and successful issuances in recent years.
00:37In September 2023, Trinidad and Tobago raised U.S. $560 million through a heavily oversubscribed bond issue,
00:47followed by a U.S. $750 million 10-year offering in June of 2024.
00:56Those transactions reflected strong investor confidence, despite rising global interest rates.
01:03While euro bonds provide critical funding, they also impact the country's debt profile and foreign exchange reserves.
01:11Existing instruments include the 5.95% bond maturing in January of 2031,
01:19as well as an older 4.5% bond due to mature in 2026.
01:26The 2024 roadshow was conducted virtually and ran non-stop from early morning to late afternoon.
01:33In a statement at that time, the Ministry of Finance under then-Minister Colm Imbit said international investors subjected the country to intense scrutiny.
01:43Discussions focused on Trinidad and Tobago's credit rating, fiscal position, economic diversification, oil and gas prospects,
01:53foreign exchange availability, exchange rate management, foreign reserves, the Heritage and Stabilization Fund,
02:00as well as governance, climate change and political stability.
02:03For the 2026 edition, the UNC administration is hoping to surpass the 2024 issuance by raising up to $1 billion U.S. dollars.
02:14The funds are expected to help refinance maturing obligations, including a U.S. $500 million bond that came due earlier in 2024.
02:23The notes will be offered to qualified institutional buyers in the United States under Rule 144A of the U.S. Securities Act
02:32and to investors outside the U.S. in accordance with Regulation S.
02:38J.P. Morgan Securities LLC and Bank of America Securities Incorporated have been appointed joint lead managers and arrangers for the proposed issuance.
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