Government of Jamaica Announces Largest Ever Issuance of Debt

August 17, 2015

New York – Paul Hastings LLP, a leading global law firm, announced today that it represented the Government of Jamaica in the issuance of a dual-tranche bond valued at US$2B. This is reported to be the country’s largest-ever issuance of debt, at its lowest‑ever interest rates, in the international capital markets.

The offering consists of two bonds, one for US$1.35B with a rate of 6.75% maturing in 2028 and another for US$650M at 7.875% maturing in 2045.

The island nation will use US$1.5B of the issue to purchase debt previously issued to PDVSA, the Venezuelan state-owned oil company. This debt was issued by Jamaica as part of the Petrocaribe Agreement with PDVSA. The balance of the offering proceeds were allocated for general budgetary financing. The liability management transaction is part of Jamaica’s efforts to improve its credit metrics as it undergoes a fiscal adjustment program.

The Paul Hastings team was led by Corporate partner Cathleen McLaughlin, with support from associates Matthew Hendrix, Jose Carlos Vera and David Makso. The Paul Hastings team was assisted by Fulvio Italiani of D’Empaire Reyna, a Venezuelan law firm.

Paul Hastings is a leading global law firm with a strong presence throughout Asia, Europe, Latin America, and the United States. Through a collaborative approach, entrepreneurial spirit, and commitment to client service, the professionals of Paul Hastings deliver innovative solutions to many of the world’s top financial institutions and Fortune 500 companies.