Jamaica Hires Banks for New Bond; Offers Buyback on Rating

• Jamaica has hired banks to arrange investor calls for a new local currency bond, and it is offering to buy back some of its dollar notes, just a day after the nation received its second credit-rating upgrade in just over a month.
• Officials from the Ministry of Finance and Public Service will hold calls with bond investors starting next week, according to people familiar with the matter. The country may sell a note denominated in Jamaican dollars with an intermediate tenor thereafter.
• At the same time, the country is offering to repurchase two series of notes due in 2025 and a bond due in 2028 for cash, according to a Thursday statement. The tender offer will expire on Oct. 27 at 5 p.m. in New York.
• The offer comes after S&P Global Ratings and Moody’s Investors Service both raised Jamaica’s credit score by a notch in just over a month. The credit-rating companies cited the government’s push to carry out structural reforms and reduce its debt load.
• Director of Fixed Income at Oppenheimer & Co., Thomas Jackson noted that the tender and new JMD issuance follow a series of good news from Jamaica, including the two upgrades. He further highlighted that the JMD issuance makes sense as it is in line with authorities' plan to reduce their exposure to foreign currency debt which is still above 60% of the balance.
• Moody’s lifted Jamaica by one notch to B1, it said in a Wednesday statement, putting the Caribbean nation four levels below investment grade. Moody’s also raised its outlook to positive from stable, signalling another upgrade is possible if the nation’s debt burden keeps shrinking.
• S&P Global Ratings in mid-September raised Jamaica’s score by a notch to BB-, three levels into junk. Fitch Ratings scores Jamaica a notch lower at B+, with a positive outlook.

(Source: Bloomberg)