Home' Trinidad and Tobago Guardian : December 8th 2016 Contents The Agent - Central Bank of Trinidad and Tobago, Eric Williams Financial Complex, St. Vincent Street, Port of Spain
GOVERNMENT OF THE REPUBLIC
OF TRINIDAD AND TOBAGO
for Auction on DECEMBER 15, 2016
3.80% FIXED RATE BONDS DUE DECEMBER 19, 2022
"The Trinidad and Tobago Securities and Exchange Commission has not in any way evaluated the merits of the securities offered
hereunder and any representation to the contrary is an offence."
12. Applications and General
Applications can be made through
the designated Government
Securities Intermediaries listed
at the end of this Information
Memorandum. Intermediaries must
enter bids, based on completed
application forms, into the electronic
auction system. Applications must
be for $1,000.00 face value or
multiples thereof. No allotment will
be made for any amount less than
$1,000.00 face value.
Intermediaries are appointed by the
Central Bank to act as counterparties
in the auction and, thereafter, to
2. Debt Management Strategy
Government's Debt Management Strategy for
the medium term will continue to focus on the
establishment of a risk management framework
and the development of an efficient market for
Government securities. Government will ensure
that both the level and the rate of growth of the
public debt are fundamentally sustainable and
consistent with international standards.
The debt management strategy will involve,
that offers fiscal sustainability, external
sustainability and solvency in the short,
medium and long-term; and
The Government of the Republic of Trinidad and
Tobago proposes to raise TT$500 million through
the issue of a Six-Year Bond with a coupon rate
of 3.80% per annum. The Bond will be issued
under the authority of the Development Loans
Act Chap. 71:04.
This Bond issue is the first Central Government
Bond issue for fiscal year 2016/2017.
The Bonds will be issued through the automated
auction system operated by the Central Bank. A
single price auction system will be used and as
far as possible, applicants will be allotted Bonds
to the fullest extent of their applications.
The auction will be opened at 10:00 a.m. on
Tuesday December 06, 2016 and will close at
1:00 p.m. on Thursday December 15, 2016.
Bonds will be dated Monday December 19,
TERMS OF ISSUE
This Bond will be issued under the
Development Loans Act Chap. 71:04.
2. Purpose of Issue
This Bond is intended to assist in financing
the government's recurrent expenditure.
The Government is also mindful of its role in
the development of the local capital market
and, in particular, the development of the
Government Bond market. To this end,
it continues to provide securities that will
cater to the needs of all investors.
These Bonds are eligible for inclusion in
the Statutory Fund of Insurance Companies
and will be considered as assets in and
originating in Trinidad and Tobago within
the meaning of sections 46 (1) and 186 (1)
and 186(3) respectively of the Insurance
Act, 1980 Chap. 84:01 and will also be
accepted without limit for appropriate
deposit purposes in accordance with
section 29 of the Insurance Act.
3. Date of Issue
The date of issue of this Bond is December
The Central Bank of Trinidad and Tobago
has been appointed sole and exclusive
agent for the raising and management of
this Bond issue.
provide a secondary market for the
Bonds. Bids can be placed competitively
or non-competitively by submitting the
relevant application form, along with
payment to a Government Securities
Intermediary. The maximum allotment
that can be obtained through a non-
competitive bid is $100,000.00 face
value at a price established in the
competitive side of the auction. This
price is the minimum price, when the
successful bids are ordered from the
highest price to the lowest price and
may be at par, premium or a discount.
A register of bondholders will be held
in book-entry form at the Central Bank
of Trinidad and Tobago.
An Information Memorandum on
this Bond issue is available at www.
central-bank.org.tt. Application Forms
and Transfer of Ownership Forms
may be obtained at the offices of all
Government Securities Intermediaries.
DEBT MANAGEMENT AND
1. Debt Management Objectives
The debt management objectives of the
Government of Trinidad and Tobago are:
of meeting its financing needs, while
containing its exposure to risk;
functioning domestic capital market, with
the creation and maintenance of a local
interest-rate yield curve; and
is consistent with the objectives of
monetary policy, fiscal policy and other
Careful monitoring and management
of contingent liabilities.
3. Accountability and Transparency
The Government of Trinidad and
Tobago is responsible for ensuring
is clearly defined and executed
within that framework;
accurately recorded and
disclosed in accordance with
the Freedom of Information Act;
in debt data; and
regularly audited externally and
The Auditor General is mandated
under the Constitution of the Republic
of Trinidad and Tobago paragraph
116 (2) and (3) to audit and report
on the public accounts of Trinidad
and Tobago annually. Under the
Exchequer and Audit Act, Chapter
69:01, the Auditor General is also
mandated to audit the accounts of
all accounting officers and receivers
of revenue and all persons entrusted
with the assessment of, collection,
receipt, custody, issue or payment
of public funds, or with the receipt,
custody, issue, sale, transfer or delivery
inter alia of securities.
The Annual Reports of the Auditor
General are submitted to the Speaker,
the President of the Senate and
the Minister of Finance and laid in
4. Institutional Framework
The debt management activities of
the Ministry of Finance are managed
by the Debt Management Unit
of the Economic Management
Division (EMD) in the Ministry of
Finance. This Unit is supported
by an automated management
information system known as the
Commonwealth Secretariat Debt
Reporting Management System. It
enables not only the timely servicing
of debt obligations, but also improves
the quality of budgetary reporting
and the transparency of Government
5. Method of Payment
The full purchase price is payable on
settlement date. Payment will be made
in Trinidad and Tobago dollars.
The principal monies and interest
represented by the Bonds will be
charged upon and are payable out
of the Consolidated Fund and are
secured on the Revenues and Assets of
the Republic of Trinidad and Tobago.
Interest is payable semi-annually on
December 19 and June 19. Interest
will accrue from December 19, 2016
and the first payment will be made
on June 19, 2017. Interest will be
calculated on a 365-day basis.
8. Business Day
In the event that a payment date
occurs on a day other than a business
day, such payment will be made on
the business day following that date.
The Central Bank of Trinidad and
Tobago has been appointed the
Registrar for this Bond issue.
Trinidad and Tobago Unit Trust
Corporation has been appointed the
Trustee for the bondholders of this
Any Bond forming part of this issue, if
not previously cancelled or redeemed
by purchase in the open market, will be
repaid at par on December 19, 2022.
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