Trinidad and Tobago has successfully issued a ten-year unsecured sovereign bond worth US$1 billion at a 6.4% interest rate, signaling robust international investor confidence in the nation’s economic direction. Finance Minister Davendranath Tancoo announced the bond offering, which was immediately oversubscribed by 2.5 times upon its January 22 launch, demonstrating substantial market demand.
The transaction, managed by financial giants J.P. Morgan and Bank of America, attracted over 140 unique orders from top-tier accounts. Minister Tancoo emphasized that this represents the largest bond transaction for the Republic in the past decade and generated the most substantial order books in five years at US$2.4 billion, despite recent negative ratings outlooks from credit agencies.
This new bond issuance serves to refinance a 2016 bond acquired under former Finance Minister Colm Imbert. Tancoo criticized the previous administration’s management of the funds, alleging insufficient repayment planning. The current bond, governed by New York laws, offers superior terms and benefits compared to its predecessor.
Key achievements highlighted include a 20 basis point compression from initial price thoughts to launch, extension of the external debt maturity profile from 4.1 to 6.3 years, and full addressing of the August 2026 external bond maturity. The transaction priced at 54.6 basis points tighter than the original 2016 issuance.
Notably, Trinidad and Tobago’s bond outperformed comparable Caribbean nations’ offerings. The Bahamas (BB- rating) issued a ten-year bond at 8.25%, Barbados (B+ rating) at 8%, and the Dominican Republic’s twelve-year bond at 6.9%.
To meet financial commitments, the government plans to address an estimated $10 billion tax gap and leverage energy sector revenues through partnerships with major energy companies including EOG, ExxonMobil, bpTT, Shell, and Perenco. Additionally, Gulf States and China have expressed interest in investing in the government’s Revitalisation Blueprint, featuring 11 major infrastructural projects over the next decade.