RBTT arranges $719M bond for Caroni

RBTT Bank continues to be a key player in the local financial market and was recently awarded the mandate to arrange a $719 million fixed rate non-callable bond for Caroni (1975) Limited.

The proceeds of this bond are to be used for the much publicised Voluntary Separation Employment Programme. The bond was issued in two series at a rate of 6.25 percent. A Letter of Comfort was issued at the first instance and will later be converted to an unconditional guarantee from the Government of Trinidad and Tobago. The bond offering is expected to be taken up by pension plans, insurance companies and other financial institutions in the local market.

Sources at RBTT Merchant Bank say that given the recent sovereign upgrade from BBB+ to A- on the local currency front by Standard and Poors, the TT Government is now capable of tapping the local market for relatively cheaper funding for these types of purposes without having to dip into Government’s coffers. This augurs well for the country’s debt-servicing capacity and will be received favourably by international investors as it demonstrates TT’s continued persistent drive to be the financial centre of the English-speaking Caribbean having relatively been insulated from post 9/11 fallout.