WILLEMSTAD/PHILIPSBURG–The Central Bank of Curaçao and St. Maarten (CBCS) will emit a bond issue on behalf of St. Maarten on Friday, May 10.
The bond will have a semi-annual coupon as follows: NAf 32,900,000 bond with duration of 30 years. Interest rate is based on the Dutch yield curve as of May 2, 2019. The yield as of April 8 for a 30-year loan was 0.69 per cent. The bond will have annual redemption starting on May 10, 2021.
The Dutch State Treasury Agency (DSTA) will be able to subscribe on Thursday, May 2, and after that the public will be able to subscribe to this bond issue at all commercial banks in Curaçao and St. Maarten up to 10:00am Friday, May 3.
Subscription will take place according to the tender system in which parties indicate for what amount and price they wish to participate in the loan, thereby revealing their desired yield.
After the closing of the subscription, the CBCS will publish the price of issue. Parties that have subscribed for a higher price than the price of issue will receive full allocation. Parties that have subscribed at a price equal to the price of issue will receive the remaining amount of the issue.
As of April 12, subscription forms can be obtained free of charge at the commercial banks and can be downloaded from the website
https://www.centralbank.cw/government-loans.
Source: The Daily Herald https://www.thedailyherald.sx/islands/86882-central-bank-to-emit-new-bond-issue-for-st-maarten
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