Housing Minister Dr Roodal Moonilal has unveiled an aggressive plan by the Government to distribute close to 5,000 homes over the remainder of this year, at a pace of 100 homes a week until year’s
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Massy, First Citizens benefit from low bond rates
The Central Bank said on Tuesday that the issuance of some $3.5 billion in TT-dollar bonds on the local market is not expected to have anything more than a temporary impact on liquidity in the financial system.
The Central Bank was responding to questions from the Business Guardian based on successful attempts by at least two and possibly three large local company to issue TT-dollar bonds in private placements on the local markets.
The three bond issues are:
• Massy Holdings raised $1.2 billion, divided into a 15-year issue, $600 million for which the final weighted average yield was 5.17 per cent and a 10-year, $600 million bond for which the final weighted average yield was 3.49 per cent.
In a public notice in April, Massy said that $700 million of the $1.2 billion bond would be used to pay existing debt, while $500 million would go to fund strategic acquisitions and expansions of the company’s business throughout the Caribbean basin.
• First Citizens Bank Ltd raised $500 million in two issues: a seven-year, $400 million tranche at 3.10 per cent and a 10-year $100 million tranche at 3.25 per cent. The First Citizens bond was officially issued on Monday.
First Citizens said the proceeds of the bond issue would be used to partially re-finance TT$500 million of bonds priced at 8.35 per cent and TT$500 million bonds priced at 5.25 per cent which were retired and prepaid respectively earlier in the financial year. The issue represents the lowest interest rate TT$ bond issue issued by FCBL to date, according to the bank, which added that the “attractive” fixed seven- and ten-year interest rates “would allow the bank to offer competitive fixed-rate loan products for various vehicle and mortgage type campaigns.”