The Ministry of Finance said yesterday that the Government's US$1 billion 10-year senior unsecured sovereign bond attracted demand for roughly 2.5 times the final offer size.
The oversubscription came despite the country carrying negative outlooks from both Standard & Poor’s and Moody’s, a reality that framed the transaction as a credibility test rather than a routine refinancing exercise.
The bond, which was jointly arranged by JP Morgan and Bank of America, carries a 6.50 per cent coupon and matures on January 28, 2036. The bond will pay investors twice a year on July 28 and January 26.
Proceeds will be used primarily to retire the 4.5 per cent US dollar notes due in 2026, with the balance supporting general budgetary needs. The structure materially extends the Republic’s external debt maturity profile, increasing the average life from 4.1 years to 6.3 years and fully addressing the looming US$1 billion maturity due in August 2026.
For Tancoo, the transaction was as much about signalling discipline as raising capital.
Commenting on the transaction, Minister of Finance, The Honourable Davendranath Tancoo said, “The successful issuance represents a clear validation of the sovereign’s credit fundamentals and new disciplined policy framework.”
He added, “Achieving pricing tighter than benchmarks, while also attracting an order book 2.5 times the final issue size in the US market, reflects sustained investor confidence in the credit and improved risk perception of the new Government of the Republic of Trinidad & Tobago.”
The three-day roadshow, which began on January 16, saw the Finance Minister and Central Bank Governor Larry Howai engage more than 50 international fixed-income investors through one-on-one and group meetings. When books opened in New York, demand accelerated rapidly, with over 140 orders from high-quality accounts driving the orderbook to approximately US$2.4 billion.
Pricing ultimately compressed by 20 basis points from initial price thoughts, closing at 98.552 per cent. Officials said the deal is priced inside prevailing emerging-market benchmarks and about 54.6 basis points tighter than a comparable US$1 billion bond issued by Trinidad and Tobago in 2016.
Beyond headline pricing, the composition of demand mattered. The Ministry of Finance said the transaction drew 144 unique investors, up from 93 in the 2024 issuance, broadening the country’s exposure to long-term real-money accounts and reinforcing its standing among global asset managers.
