Trinidad and Tobago ended a three-year absence from the international bond market on Monday with the sale of $560 million in new 7.5-year notes.
The Caribbean island nation priced the 5.95% 2031 bonds at 99.267 to yield 6.077%, or 170 basis points over US Treasury bonds, after opening the deal earlier in the day between 190 and 195 basis points, a source familiar with the deal told LatinFinance.
Demand for the bonds peaked at $1.5 billion, the source said.
Trinidad and Tobago’s government announced an offer last week to repurchase up to $550 million worth of 4.375% 2024 bonds, putting up $996.50 for every $1,000 in principal for investors that tender their notes by September 12.
It plans to use the proceeds from bond sale to fund the buyback, according to a presentation to investors.
JPMorgan and Scotiabank were joint bookrunners on the Rule 144A/Reg S bond sale and are dealer managers on the buyback, while Lazard acted as financial advisor, according to the presentation.
Trinidad and Tobago last issued bonds in the international market in June 2020, when it sold $500 million worth of 10-year notes after four-year hiatus.