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Jamaica raises billions to pay petrocaribe debt

Published:Thursday | July 23, 2015 | 7:09 PM

Jamaica has raised US$2 billion dollars on the international capital market which is to be used to offset its PetroCaribe debt.

International news agency, Reuters, reported this afternoon that Jamaica has set final yields on a dual-tranche bond sale after order books swelled to US$4.5 billion today.

Jamaica had launched a US$1.35 billion bond to yield 6.75 per cent in 2028 and a $650 million bond with a 2045 maturity date to yield 7.87 per cent.

Proceeds are being used in part to retire some US$3 billion of PetroCaribe debt owed to Venezuela at a price of US$1.5 billion.

Speaking during a press briefing today, Director of the Communications Department of the International Monetary Fund, Gerry Rice, said the Fund fully supports the transaction.

He said the buyback is firmly anchored in the goals of the government’s reform program.

Rice also said it is an important step in reducing the value of Jamaica's public debt and will help to put debt firmly on a downward trajectory.