BELIZE SUPERBOND TRIVIA
Maria Mercedes said...
Hi, I read your blog with enthusiasm. I have a suggestion regarding the Super Bond. Why don't you suggest to the Government to use a part of the US$250 million Belize has as International Reserves to buy a big chunk of the Super Bond? If they use US$100 million of reserves, the reserves would still total US$150 million, but it would allow the Government to buy almost twice as much in nominal value of the bonds, as they are trading at 55%, almost US$200 million worth of bonds. So the super bond would be reduced from US$565 million nominal to $365 million nominal- a reduction of 35% of the size of the super bond, with money that Belize already has in the form of International Reserves. Cheers!
mariamercedes3@gmail.com
mariamercedes3 AT gmail.com
February 7, 2012 10:18 PM
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Blogger A Professional BEACH BUM retires in Belize! said...
Maria
The UDP in the form of the Finance Minister has stated, they are not allowed to buy back the bonds. Of course they could I believe do so on the OPEN MARKET. Currently the Belize Culture Listserve who investigates such things, said last week, Belize Superbonds 2029 were trading in Berlin for .31 cents on the dollar. They normally trade on the LUXEMBURG MARKET Exchange. I tried to buy some, but the website was not retail buyer friendly, apparently intended only for BANKS. I was contemplating buying the equivalent of $25,000 USA. I gave up as I could not figure out how to do it?
March 4, 2012 9:54 PM
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3 comments:
Beach Bum, Dean Barrow lies to people. He wants to justify his incompetence in these last 4 years, by blaming the Superbond, when in reality the Superbond improved the debt profiling of Belize, as I explained in my second post, see "BELIZE BOND ISSUE 2029 coming up, no matter who runs the government, this year. "
As to what can and can not be done, do not take Dean Barrow's word at face value.
From the Prospectus of the Superbond, DATED MARCH 5, 2007
Amortizations 20 equal semi-annual installments commencing August 20, 2019.
Optional Redemption Belize may redeem the Securities at par together with accrued
interest, in whole or in part, on any interest payment date falling on
or after (but not prior to) August 20, 2019. Belize may at any time
acquire (for cancellation) the New Bonds in the secondary market.
See “Terms and Conditions of the New Bonds—Redemption” with
respect to the New Bonds.
Another lie Dean Barrow likes to spread is that the Superbond prevents Belize from accessing the credit markets, and therefore having a bad credit rating doesn't matter.
Well a good credit rating IS important, as the wealthiest nations in the world know, and the Superbond does NOT impede the GOB from accessing the credit markets.
From the prospectus:
Further Issuance Belize may, from time to time, create and issue further bonds having
the same terms as and ranking equally with the New Bonds in all respects and such further bonds will be consolidated and form a
single series with the New Bonds.
The prospectus mentions GOB purchases again on page 130:
(c) Belize may at any time acquire (for cancellation) the Securities in the secondary market
by private purchase, exchange or by public tender.
As to how to buy them: you need to open an account at an international bank, such as JP Morgan or Deutsche Bank, and buy them through these banks. Or a broker that trades such securities.
As for the price.. unfortunately you will not find them for 31 cents.
Beach Bum, to facilitate your purchase, tell any bank or broker you want to buy the following security:
ISIN: USP16394AF89
WKN: A0LNPG
BELIZE, GOV.OF 07/29 REGS
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