Investors offered back US$476.6 million of the roughly US$2.33 billion in Jamaican government bonds the administration invited them to sell, in a buyback that closed on Wednesday, according to results published on Thursday.
Almost none of the debt carrying the highest interest rate was tendered.
The Government said the offer “expired as scheduled at 5:00 p.m., New York City time, on September 9, 2026,” and set out what holders of each of the three targeted bonds had put forward.
Holders of the 8.500 per cent notes due 2036 offered just US$2.15 million. Tenders for the 6.750 per cent notes due 2028 came to US$343.2 million, and for the 8.000 per cent notes due 2039 to US$131.3 million.
The 2028 bond has already been partly repaid, so Jamaica would pay out less than the face value tendered on that series.
Jamaica has not said how much of the debt it will actually buy. It “expects to announce the amount of ‘old notes’ later this month, according to the release.
The whole exercise depends on a separate bond sale. Jamaica said it “intends to apply a portion of the net proceeds of its new notes offering announced on Wednesday, September 2, 2026 … to purchase the old notes accepted”. If that sale does not close on acceptable terms, the buyback falls away. The Government said it will confirm by “on Thursday, September 17” whether that condition has been met. Settlement is due the same day.
Whether the exercise saves the country money is still unknown. Jamaica has not published the interest rate on the new bond.
The Financial Gleaner awaits responses from wealth management firms on the implications of the take-up.
Holders of the 2036 bond had the least reason to sell, as it pays the most. The 2028 bond, closest to being paid off, drew the biggest response.
Citigroup Global Markets Inc and Scotia Capital (USA) Inc acted as dealer managers. Global Bondholder Services Corporation was the information and tender agent.
business@gleanerjm.com
