Barbados Reported Seeking Jumbo Funding

Barbados is seeking to raise funds that could amount to 13% of GDP, according to local press. The sovereign needs $500m to pay off debt, says Barbados’ Nation News, which adds that funds would be raised by issuing Treasury bills, tax reserve certificates, and tax refund certificates. The newspaper adds that the prime minister is pursuing a resolution to raise BBD1bn ($500m) to retire debt. Analysts say that the amount is very high versus the size of the economy. Nation News adds that Barbados, which has GDP of close to $4bn, is also seeking a $35m World Bank loan. Barbados last went to international capital markets in November 2006, when it retapped 6.625% of 2035 bonds to raise $65m at a yield of 6.505% through Deutsche Bank as sole bookrunner. Credit analysts say that the highly indebted but highly rated sovereign would struggle to get anywhere near that pricing in current hostile markets. Government officials in Barbados refer all inquiry to the prime minister, who was not immediately available for comment.