Jamaica Extends NDX

Jamaica has extended its debt exchange through Thursday, the finance ministry says, in the hopes of getting as close to 100% participation as possible. Acceptance stood at 97% as of Friday, the original closing day of the offer, known as the national debt exchange (NDX). Nearing 100% was seen as critical to the government’s negotiations for a new standby facility with the IMF. The NDX is targeting JAD860bn ($9.12bn) in 25 series of JAD-denominated, USD-denominated and inflation-indexed bonds at various maturities. As with the JAD700bn 2010 JDX transaction, it does not involve a haircut on principal, but a reduction in interest rates and an extension of maturities. The country was expected to have reduced the bonds from 25 series to 21, lower coupons on its debt by between 1% and 5%, and extend most maturities by 3-5 years and a few by as much as 10 years, according to a source familiar with the deal. Citi is managing the process. The government has set a goal of having a debt-to-GDP ratio of 95% percent within seven years, down from 140% now, it says.