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JDX extended again for late applicants

Published:Friday | February 5, 2010 | 12:00 AM

THE FINANCE ministry said Wednesday that the Jamaican Government would continue to accept applications under the Jamaica Debt Exchange (JDX) programme up to the final settlement date on February 16.

Interest accrued up to the settlement date will be paid immediately at final settlement, "rather than on a deferred basis", said a notice posted on the ministry's website.

The offer had earlier been extended from January 26 to February 23, largely to accommodate retail bondholders for whom the initial two-week window was insufficient to respond to the offer.

"Such late submissions will be received at the Bank of Jamaica and by your broker," the release said.

Those who have already applied, but provided insufficient information - including missing certificates and indemnities - and missed the 5 p.m., February 4 deadline to provide the additional information, may experience a delay in the settlement of their bonds beyond the February 16 date, the ministry warned.

Late offers beyond February 3 will also be settled later.

The new bonds will be issued electronically, a process now facili-tated by passage of the Government Securities Dematerialisation Act 2010, and the old notes cancelled.

The JDX swaps $701 billion worth of bonds for longer tenors and cheaper coupons, averaging 12.25 per cent.

The swap will eliminate 350 notes and replace them with 24 issues, including a new type of instrument for Jamaica - two inflation-linked issues.

Jamaica hopes to save $42 billion in annual debt-servicing costs from the exchange.