Government Successful at Issuing a Benchmark US750 Million Bond Issue

first_img Related Items: Facebook Twitter Google+LinkedInPinterestWhatsApp#Bahamas, November 18, 2017 – Nassau – Deputy Prime Minister and Minister of Finance the Hon. Peter Turnquest gave details in the House of Assembly of the Government’s recent success at issuing a benchmark US$750 million bond issue, which has been opened to the markets and priced, and is expected to close on November 21, 2017.    He made the statement on Wednesday, November 15, 2017.DPM Turnquest also took the time to set the record straight in response to numerous reports in the Press and social media about the transaction, which characterised it as “lacking in transparency and fiscal prudence.”“Nothing could be further from the truth.    There was absolutely nothing devious, surreptitious or imprudent about this transaction or the manner in which it was handled.    There are certain ways these transactions are handled in the international market, and we are appropriately guided by our investors in this regard,” he told the Members of Parliament.DPM Turnquest explained that all of the Government’s financing activities are conducted within the constraints of its approved borrowing authorities, and shaped and informed by pragmatic debt management strategies.“These strategies, for example, take into consideration the size and currency composition of the Government’s financing requirements; the identification, analysis and preferences of potential funding sources—whether it is best to source the debt in domestic or foreign currency; and, of course, with due consideration to market liquidity, cost and risk factors.“To be sure, such analysis and evaluation requires interaction with other agencies—especially our bankers, and most certainly the Central Bank.   As is customary, we collaborate very closely with the Central Bank, which manages the issuance of government paper in the domestic market, for advice on domestic liquidity conditions—how much excess loanable funds are in the system, and what is the appetite of the main investors in government paper—the banks and institutional investors (pension funds and the insurance companies) to increasing their holdings.”He said these factors, including foreign reserves considerations, not only influence the timing and size of potential issues, but also determine decisions on whether borrowings are undertaken in domestic or foreign currency.    Such decisions involve serious and considered deliberations by the Government in managing the country’s debt.   The DPM noted that during the 2017/18 Budget Communication, two borrowing resolutions were approved by the House.The first covered the additional funding approval of $400 million to settle the outstanding arrears for FY2016/17 and the second was in respect of FY2017/18, and provided for financing to cover the overall budget deficit, estimated at $322.3 million, and refinancing/debt repayment obligations, which are now projected at $600.2 million.He said, “Therefore, while the total borrowing envelope under these two approved resolutions totaled approximately $1,322.7 million, the increment to the outstanding debt was and remains $722.3 million, as the $600.2 million in refinancing/debt repayment would have a neutral impact on debt levels.”DPM Turnquest also noted that it is instructive to mention, that, at the beginning of each Fiscal Year, one of the first things that the Government sets out to do, through its Treasury Department, is to develop monthly cash flow projections—based on how it perceives the evolution of revenue performance and the timing of its outlays.“These projections are calibrated, on an ongoing basis, to ensure that there are sufficient funds available to meet the Government’s budgetary requirements, as and when needed.“It is now common knowledge that there were pressing funding needs at the end of the past fiscal year and the outset of the current period, which placed an urgent requirement on policymakers to identify immediate funding sources to meet these obligations.”He said after an evaluation of the funding options, the Government moved expeditiously to source several short-term bridging facilities, which included US Dollar bank credits ($450 million) and domestic treasury bills and bank advances ($300 million).“I want to emphasize that these facilities were always contemplated to be short-term in nature, with a subsequent “terming out”, i.e., lengthening of the maturities to achieve a more favourable debt servicing profile. And having considered conditions in the domestic market, and the number of significant rollovers contemplated, the intention was to explore the possibility of rolling up these short-term credits into an international bond issue.”The bonds, characterized as a 10-Year weighted average life bond, was priced at a coupon or interest rate of 6.00 per cent, which is some 250 basis points above the pricing obtained in the Government’s last bond issuance in 2014 when it enjoyed investment grade credit status.It is to be repaid in three equal annual installments, commencing on November 21, 2026, and with a final maturity on November 21, 2028.   T he 6.00 per cent yield is equivalent to a spread of 362.1 basis points above the US Treasury’s 10-year benchmark bond.The Deutsche Bank Securities Inc. and RBC Capital Markets, LLC. managed the offer as joint book runners.By: Llonella Gilbert (BIS) Facebook Twitter Google+LinkedInPinterestWhatsApplast_img read more

Trump Putin agree no military solution in Syria

first_imgThe United States and Russia issued a presidential joint statement saying there was “no military solution” to the war in Syria, the Kremlin said Saturday, after their leaders met briefly on the sidelines of a regional summit in Vietnam.There had been mixed messages for days from both Moscow and the White House on whether president Donald Trump and his Russian counterpart Vladimir Putin would hold face-to-face discussions during the APEC summit in Danang.The pair were seen sharing cordial handshakes and brief conversations three times during the summit but there were no sit-down talks between the two.In a statement published on its website, the Kremlin said the two presidents had made progress on Syria, which has been battered by six years of civil war.The US and Russia have backed competing factions in the bloody conflict and agreement between them on the next steps towards peace is rare.“The presidents agreed that there is no military solution to the conflict in Syria,” the statement said, adding that the two sides “confirmed their determination to defeat ISIS”-an alternative name for the Islamic State jihadist group.The statement also added that the two sides had agreed to keep military channels open to avoid potential clashes over Syria and urged the warring sides to participate in UN-led peace talks in Geneva.The publication of the statement on the Kremlin’s website took reporters travelling with Trump by surprise and there was no immediate response from the White House.Russia has run a major bombing campaign in Syria since 2015 when it stepped in to support President Bashar al-Assad’s fight against rebels-some of them US-backed-tipping the conflict in his favour.The Russian military has recently accused the United States of merely “pretending” to fight IS in Iraq and of hindering the Russian-backed offensive in eastern Syria.But the Kremlin said Saturday’s joint statement “expressed satisfaction” with efforts to prevent incidents between their respective forces in Syria.Mixed messagesTrump’s relationship with Moscow has haunted the first year of his presidency, with key former aides under a US investigation for alleged collaboration with the Kremlin.Putin and Trump last held face-to-face talks at a G20 summit earlier in the year and there was intense speculation over whether they would so do again in Danang.But overly amicable talks between Trump and Putin in Vietnam risked being an awkward sell for the White House as it vigorously denies any undue links with the Kremlin.Earlier in the week Trump had said he was keen to meet Putin, seeking support in confronting North Korea over its nuclear weapons programme.The Kremlin also said a meeting was planned for Friday.But his aides publically cooled expectations before Trump’s arrival at the summit, to the annoyance of Moscow’s top diplomat Sergei Lavrov who slammed White House “pen pushers” for sending out mixed messages.Relations between Moscow and Washington have plummeted as the US probe has accused Trump’s former campaign aides of secretly meeting Kremlin-connected officials-a charge Russia denies.His former campaign chairman Paul Manafort and an associate are under house arrest on charges including conspiracy to launder money, linked to the probe by special counsel Robert Mueller into allegations that the campaign colluded with Russia.Russia has denied allegations of interfering in the US election last year that brought Trump to power.last_img read more

Refreshing history

first_imgWith this thought, Doordarshan is set to telecast Dastan-E-Urdu, a new 13-part docu-drama series, bringing alive the fascinating history of this Indian language, breaking the myths by unveiling several interesting cross-cultural connections every Sunday at 9:30 pm.  Directed by Aparna Srivastava Reddy and produced by eminent Urdu activist Kamna Prasad, the 13 part series of Dastan-E-Urdu explores the journey of Urdu language and its mushtarqa tehzeeb. Be it literature, journalism or popular culture, expressed in recent times through theatre, films, television or the new media, Urdu language has retained its eminent place in the mind and hearts of people. Also Read – ‘Playing Jojo was emotionally exhausting’In order to showcase the language’s grandeur and its tehzeeb in purest sense, Dastan-E-Urdu has deployed deep research into Urdu’s language journey, while conceptualising it. Dastan-E-Urdu takes the viewer on a pan-India journey, capturing all the aspects and nuances that underscore Urdu’s poetic opulence, its Ganga-Jamuni syncretic essence as well its everlasting, universal appeal.‘Understanding the evolution of Urdu, gives fresh insights into who we are as Indians’ is the bottom line of the show. Covering myriad shades and influences of Urdu language, the programme is being shot all over the country – from Kashmir to Kerala. It delves into dramatisation of key personalities and reconstructions of key periods in the history of the language. Galaxy of experts including Prof Gopi Chand Narang, Javed Akhtar, Prof Shamim Hanfi, Shamsur Rehman Farukhi, Pt Gulzar Dehlvi, Prof Mushirul Hasan, Dr Karan Singh and Farooq Sheikh among other stalwarts creates a panoramic view of Urdu’s evolutionary journey for the viewer. The music for the show is given by Shubha Mudgal.last_img read more

Perceived overqualification may lead to job strain

first_imgIf you are an employee who perceives you are overqualified for your position, chances are you are unsatisfied with your job, uncommitted to your organisation and experience psychological strain, says a study. Perceived overqualification occurs when an employee is expecting a job that utilises their qualifications but does not find themselves in such a position, leaving them feeling essentially deprived.”We invest effort at work and we expect rewards in return, such as esteem and career opportunities,” said Michael Harari, Assistant Professor at Florida Atlantic University in the US. Also Read – Add new books to your shelf”And for an overqualified employee, that expectation has been violated. This is a stressful experience for employees, which leads to poor psychological wellbeing, such as negative emotions and psychological strain,” Harari added.Perceived overqualification – the belief that one has surplus skills compared to job requirements – can have negative implications for employees and employers alike, according to the findings published in the Journal of Vocational Behavior. Also Read – Over 2 hours screen time daily will make your kids impulsiveEmployees who feel overqualified are also more likely to engage in deviant behaviours, Harari said.The more overqualified an employee feels, the more likely they are to engage in counterproductive behaviours that impair the effective functioning of organisations, Harari said. Employees who were younger, overeducated and narcissistic tended to report higher levels of perceived overqualification, the findings showed.”It seems to suggest that there is a need to take jobs below one’s skill level in order to gain entrance into the workforce,” Harari said.last_img read more