Nipdec issuing 5.15% bond

The National Insurance Property Development Company (Nipdec) announced yesterday that it would issue a $339 million bond on August 22 to finance the implementation of phase two of the Motor Vehicle Authority. The Nipdec bond will have a duration of 13 years and will be issued at a coupon of 5.15 per cent at a fixed rate over the life of the instrument. The interest on the bond will be payable twice a year on February 22 and August 22 and the bond’s interest and principal will be charged upon and are payable from the Consolidated Fund and are secured by the revenues and assets of the State. Individuals can make non-competitive bids of up to $100,000. Applications must be made through the designated Government Securities Intermediaries, which include all of nation’s commercial banks as well as the Unit Trust Corporation, ANSA Merchant Bank and Bourse Securities.

According to the information memorandum issued yesterday by the Central Ban, the intermediaries must enter bids based on completed application forms, into the electronic auction system. Applications must be for $1,000 face value or multiples thereof and no allotment will be made for any amount less than $1,000.00 face value. The intermediaries will act as counterparties to the Central Bank in the auction and will thereafter provide a secondary market for the bonds. Bids can be placed competitively or non-competitively by submitting the relevant application form, along with payment to a intermediary.