SVG

Gov’t bonds oversubscribed by EC$285,000

KINGSTOWN, St. Vincent — The government’s EC$40 million 10-year bond issue auctioned on the Regional Government Securities Market on Friday using the primary market platform of the Eastern Caribbean Securities Exchange (ECSE), was oversubscribed by EC$285,000.

The Ministry of Finance and Economic Planning said in a statement that a competitive uniform price auction methodology was used and the closing rate was 7.5 per cent.

Three licensed intermediaries placed 20 bids, ranging from EC$10,000 to EC$10 million with an aggregate value of EC$40,285,000.

“The success of the bond issue reflects the public’s confidence in the RGSM and in particular securities issued by the Government of St. Vincent and the Grenadines. Indeed our monthly issues of Treasury Bills have been well supported and are usually oversubscribed,” the statement said.

The proceeds from this issue will be used to finance projects in the Public Sector Investment Programme in accordance with the macroeconomic programmes as contained in the 2012 Estimates.

Some of the projects to be financed include: improvement of education through ICT, upgrading of the Administrative Centre, the Population and Housing Census, upgrade of the Fire Service, rehabilitation of the Windward Highway, the completion of the Medical Complex and the completion of the Customs and Excise building.

The next major activity — apart from the monthly treasury bills — would be the Initial Public Offering (IPO) in the Bank of St. Vincent and the Grenadines scheduled for next month. Under this IPO the government would be offering for sale 2 million shares of the bank at approximately EC$8.65 per share.

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Discussion

13 thoughts on “Gov’t bonds oversubscribed by EC$285,000

  1. Peter?

    Posted by John | May 2, 2012, 14:36
  2. Offering these ‘Treasury Bills’ and Bonds can well be described as the ‘Gonsalves Folley’. For this alone Gonsalves should be hung drawn and quartered.

    Here is the way it worked, about nine years ago when Gonsalves couldn’t pay the government workers, he sold a Treasury Bill raising 16 million dollars. He then got caught on the treadmill of selling Treasury Bills every month to pay off the previous 90 days Treasury Bills. What has transpired is that over nine years he has raised hundreds of millions of dollars by selling these Treasury Bills, only to repay the original $16 million dollars. Because the Treasury Bills are discounted there is a short fall in what the treasury has to repay the bills, so each year he has issued a long term Bond for about $40 million.
    That original treasury bill has cost us hundreds of millions of dollars. We are now at the critical time and are free falling into so much debt that the burden cannot be supported.

    Extra burden has also been the airport at Argyle.

    At some time very soon we must default on repaying these Treasury Bills and Bonds.

    The ULP Government have been selling Treasury Bills every single month for the last 9 years. The Treasury Bills are sold at a discounted rate i.e. January 4th 2012 was discounted at 5.82% repayable in 91 days. That is equivalent to paying an interest rate in excess of 23% a year.

    The IMF are under the misconception that we are not borrowing at commercial rates. Gonsalves told us that we are getting cheap money at 2% from ALBA. Why did he not tell the people that we are using the Bond Market and selling Treasury Bills, paying through the nose for that money, in excess of 23% per annum.

    Dr. Slater said in parliament that we have not taken any commercial money and are borrowing at 2%. That is totally untrue, we borrowed money to bail out the NCB bank at much greater rates than that. We also sell our treasury bills and pay an equivalent 10 times that amount of interest.

    Below are the proposed Treasury Bill sales for 2012

    January 4th 2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82% Treasury Bill [=23.28% p.a.]

    February 1st 2012: Government of St Vincent and the Grenadines 91-day EC$25M, 5.82% Treasury Bill.
    March 1st 2012: Government of St Vincent and the Grenadines 91-day EC$25M, 5.82% Treasury Bill.
    April 10th 2012: Government of St Vincent and the Grenadines 91-day EC$25M, 5.82% Treasury Bill.
    May 4th 2012: Government of St Vincent and the Grenadines 91-day EC$25M, 5.82% Treasury Bill
    June 4th 2012: Government of St Vincent and the Grenadines 91-day EC$25M, 5.82% Treasury Bill
    The action by the government in selling Bonds and Treasury Bonds is one of the things that has helped to bankrupt the country.

    We also have hundreds of millions owed to long term bond holders, how we will ever be able to pay that money on maturity of those bonds only our grandchildren will know.

    I have followed these transactions since the first one was issued, and have a record of every Treasury Bill sold and discounted, and at what cost. I also have a record of every Bond issued.

    Eastern Caribbean Securities Exchange.
    The Government of St Vincent and the Grenadines’ $40.0M 10-year bond issue,
    auctioned on the Regional Government Securities Market using the primary
    market platform of the Eastern Caribbean Securities Exchange (ECSE), was
    oversubscribed by $285,000.
    Three licensed intermediaries placed a total of 20 bids, ranging from $10,000 to $10.0
    million with an aggregate value of $40.3 million. A competitive uniform price auction
    methodology was used and the closing rate was 7.5 per cent.
    The following brokerage firms participated in the auction:
    1/ Bank of St Vincent and the Grenadines Limited
    2/ First Citizens Investment Services Ltd
    3/ Financial Investment & Consultancy Services Ltd.
    _______________________

    You can be sure that our NIS are holding multi millions of Bonds and Bills from SVG, its another way of getting money from them. When it all collapses’ it will wipe out the NIS.

    What we need to look at is if any member of government or family member of those, or company owned by such people have purchased any part of these Bonds and Bills. Because so much money has been thrown away by these transactions, I find it unbelievable that someone in SVG or closely related in the Caribbean has not had a finger in the pie.
    We urgently need some forensic accounting firm to look into the whole situation.

    SELLING BONDS AND BILLS IS A SIGN OF SVG IN TROUBLE

    WAKE UP PEOPLE AND SMELL THE SULPHUR

    Posted by Peter | May 2, 2012, 21:04
  3. “I AM HERE TO FINISH THE WORK OF MAURICE BISHOP”

    Posted by Peter | May 2, 2012, 21:06
  4. You just have to LAUGH at Eustace and the NDP when you see news of this NATURE.

    Posted by VINCYPOWA | May 2, 2012, 21:36
  5. SVG POLITICAL OSTRICHES:

    That’s right, VINCY POWA, when you can’t take the facts, then either kill the messenger — or MOCK and LAUGH at the hard, cold, facts. The political ostrich HIDES ITS HEAD. Don’t tell me the facts. Meanwhile, SVG goes down the Cucumber Heel’s toilet. Is this your style of avowed ‘patriotism’ ? When did you jump the track of REASON, LOGIC, and just plain COMMON SENSE ?!!

    Posted by STEVE_ HUGGINS | May 3, 2012, 02:37
  6. VINCYPOWA, you really are the most stupid person ever to post on this news site. Eustace has been warning for years now of the iminent dangers in the borrowing against Bonds and Bills without the regard of ability to repay.

    Gonsalves said yesterday that the bond was sold at 4% interest paid , this was untrue it was sold at 7.5% interest. Simply another lie.

    The $40 million only covers a part of the discount shortfall on the Treasury Bills sold over the last months.

    To say that $40 million would put right Gonsalves list: improvement of education through ICT, upgrading of the Administrative Centre, the Population and Housing Census, upgrade of the Fire Service, rehabilitation of the Windward Highway, the completion of the Medical Complex and the completion of the Customs and Excise building,
    is a bunch of horse sh.t. More lies on lies. This amount would not cover a half of the Windward Highway project.

    As for the sale of the bank shares, we need to sell these with utmost urgency, but even this can only be a drop in the ocean to save us from following St. Kitts into bankruptcy and repayment default on our bonds and borrowings.

    We are borrowing money fully well knowing that we have insufficient income to repay or service those debts.

    If this was done by a limited liability company the directors may well go to prison for knowingly trading whilst insolvent, they may well be responsible also for the debt and be banned from holding future office in any company.

    I hope that Gonsalves doesn’t think he will be able to just walk [hobble] away from this mess when it all blows up, because if he believes that he can think again.

    WAKE UP PEOPLE AND SMELL THE SULPHUR

    Posted by Peter | May 3, 2012, 07:00
  7. EUSTACE AND PETER HAVE THE SAME IQ. 2.LOL

    Posted by Jason | May 3, 2012, 12:09
  8. Who recently said this “we own the country, the NDP only live here” ?

    Posted by Peter | May 3, 2012, 16:25
  9. PETER, like all your other PRATTLES, because you cannot point to any analysis done on your part, which has led to anything TRUTHFUL or SUBSTANCE, so this too will be another EPISODE of you FOAMING at the MOUTH.

    Posted by VINCY POWA (@VINCYPOWA) | May 4, 2012, 09:18
  10. VINCYPOWA, I have the analsyis its in the book, I also have a record of every Treasury Bill and Bond issued by the Gonsalves government. I am sure your halfhearted response tells all.

    JASON, I will not even comment on your reply, because your only a Unity Liars Party pratt of the dunce class.

    VINCYPOWA, JASON, stop being idiots and get on with your cottaging activities.

    Posted by Peter | May 4, 2012, 13:30
  11. VINCYPOWA, I nearly forgot that your name “COWHEAD” is now replaced with “CHUNKY the man with the pineapple bollocks”.

    Posted by Peter | May 5, 2012, 14:21
  12. it’s like investing in a ponzi scheme,until SVG collapses like St.Kitts investors stand to make over 5% on investments,so of course it will be oversubscribed,if stanford/willam wise were still around they’d be oversubscribed too

    Posted by Joe | May 5, 2012, 16:59
  13. JOE, your quite right, well put. How about Buccament, is that a kind of Ponzi scheme?

    Posted by PETER | May 7, 2012, 07:54

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