MINISTRY OF FINANCE & PLANNING
RESULTS OF 7-YEAR LRS TENDER

The Ministry of Finance and Planning, through its Debt Management Unit, has successfully auctioned its first 7-year Local Registered Stock (LRS).

This is in keeping with the current debt strategy to lengthen the repayment terms of government securities and issue Local Registered Stocks with a range of terms to suit various niches of the domestic market. The instrument was geared towards long-term institutional investors, such as insurance companies and pension-funds, and is expected to provide an opportunity for a better matching of assets and liabilities within their portfolio.

A healthy appetite for this 7-year LRS was demonstrated with subscriptions of $2.1 billion seeking the $400 million on offer. Keen interest was shown by long term institutional investors. The seven-year LRS has a coupon (nominal interest rate) of 16.0%. The auction resulted in an average yield of 22.60%.

Since the inception of the auction in October 1999, the Ministry of Finance and Planning has successfully issued 2, 3 and 5-year Local Registered Stock. Since the start of the FY 2000/01, some $2.15 billion of 5-year LRS has been issued or just over 32% of total LRS auctioned over this period.

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