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![Page 1: Government of Jamaica Jamaica Debt Exchange (“JDX”) Individual Investor Presentation January 19, 2010.](https://reader035.fdocuments.us/reader035/viewer/2022070412/5697bf8c1a28abf838c8bf92/html5/thumbnails/1.jpg)
Government of JamaicaGovernment of Jamaicazx
Jamaica Debt Exchange (“JDX”)
Individual Investor Presentation January 19, 2010
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Government of JamaicaGovernment of Jamaicazx
2
Pamella McLaren
– Senior Director Debt Management – Ministry of Finance and the Public Service
Representative
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Government of JamaicaGovernment of Jamaicazx
Introduction
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Government of JamaicaGovernment of Jamaicazx
4
87% 89%
117%
122% 124% 123%120%
117%114%
124%
137%
80%
90%
100%
110%
120%
130%
140%
150%
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
E2009/10
Tot
al D
ebt/
GD
P (
%)
High Levels of Debt
Interest as % of Tax RevenuesDebt / GDP
57.0%
50.3%
47.6%
50.3%
65.1%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
2005/06 2006/07 2007/08 2008/09 E2009/10In
tere
st a
s %
of T
ax
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Government of JamaicaGovernment of Jamaicazx
5
Programme Framework
EconomicProgramme
Fiscal Reform
MultilateralFinancial Support and Monitoring
Jamaica Debt Exchange
(JDX)
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Government of JamaicaGovernment of Jamaicazx
6
Debt Dynamics at a Fork in the Road
Jamaica (B
+)
Turkey (B
-)
Brazil (B
+)
Uruguay
Pakistan (B
)
Ukraine (B
)
Median for B
s
Belize (B
+)
Turkey (B
-)
Jamaica (B
+)
Pakistan (B
)
Brazil (B
+)
Uruguay
Median for B
s
Belize (B
+)
Ukraine (B
)
Source: IMF, excludes IMF debt
100
110
120
130
140
150
160
2004/052005/062006/072007/082008/09E2009/10F2010/11F2011/12F2012/13F2013/14
Tot
al D
ebt/
GD
P (
%)
Active
Passive
Historical
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Government of JamaicaGovernment of Jamaicazx
7
Par for Par
J$ 100 Old Notes J$ 100 New Notes
+
Accrued Interest
New Bonds:
- Longer Maturity
- Lower Coupon
- New Features: Fixed Rate Non-Call Life & CPI Bonds
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Government of JamaicaGovernment of Jamaicazx
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Choices for All Investors, Subject to Maturity Rules
Variable Rate “VR”
Fixed Rates “FR”
USD
New Fixed Rate3-Months to 30 Years
New Variable Rate1.5 Years to 22 Years
Inflation Indexed12 Year and 20 Year
New USD3, 4 & 6 Year
Old Notes New Notes
Up to:10
Choices
Up to:21
Choices
Up to:3
Choices
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Government of JamaicaGovernment of Jamaicazx
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How do I know which bonds I can choose?
1) Start with type of Old Note – and check the maturity table
2) If Fixed Rate Bond (“FR”) look at the maturity of your bond,
example 15.75% due August 24 2011 (about 1.5 Years).
3) Look on Table 2 on page 10 of the document for the row
corresponding to this maturity range.
You will only have 3 choices in this case:
Fixed Rate 4-Year Bond with 12.50% coupon due 2014
Fixed Rate 6-Year Bond with 12.625% coupon due 2016
Fixed Rate 9-Year Bond with 12.75% coupon due 2019
ALL CHOICES NON-CALL LIFE
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Government of JamaicaGovernment of Jamaicazx
10
Single-Choice “Retail” Window, J$ 5MM or less
Variable Rate “VR”
Fixed Rates “FR”
USD
FR
VR
USD
Coupons: 12.25%
Tenors: 3 Years
Structure: Not Callable
Spread: 1 Month T Bill + 1.0%
Fixed Period
11.75% for 3 Months
Tenors: 3.5 Years
Coupon: 6.75%
Tenor: 3 Year
Old Notes New Notes
1 Choice
1 Choice
1 Choice
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Government of JamaicaGovernment of Jamaicazx
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Submission Forms for Your Old Bond
USD Old Bonds – Blue
Fixed Rate Old Bonds –Yellow
Variable Rate Old Bonds - Green
Data Required:
- Name, TRN
- Contact Information
- Note Series Name, Maturity
- Certificate Number and Amount
- Delivery Information
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Government of JamaicaGovernment of Jamaicazx
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Submitting an Offer
You can submit yourself – or submit through your broker
Eligible Investors: Jamaican Residents
Valid Submission: Submission Form + Note Certificate
Submission Form: Selection of New Bonds + Other Info
1 – 10 Certificates
10+ Certificates
Use Physical Offer Submission Form
Deliver to Bank of Jamaica
Use Electronic Offer Submission Form
Deliver to Ministry of Finance
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Government of JamaicaGovernment of Jamaicazx
13
Delivering Certificates
Delivering Old Certificates to the Government of
Jamaica:
Required for all submissions
Receiving New Certificates from the Government of
Jamaica:
This can be to your home or to the care of your broker
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Government of JamaicaGovernment of Jamaicazx
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Transaction Processing Timeline
• Cancellation of Old Bonds• Credit for New Bonds
January 14, 2010
Launch Date
January 26, 2010
Expiration Date
February 16, 2010
Settlement Date
Registration& Certificate
Delivery
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Government of JamaicaGovernment of Jamaicazx
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Transaction Information Ministry of Finance and the Public Service
www.mof.gov.jm Information Memorandum Investor Presentation Press Releases Certificate submission forms and instructions Electronic submission spreadsheet Q&A Clarifications and amendments
Bank of Jamaica
www.boj.org.jm
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Government of JamaicaGovernment of Jamaicazx
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New Benchmark Bonds
Maturity Yield
3 Month 11.00%
6 Month 11.25%
1 Year 11.75%
2 Year 12.00%
3 Year 12.25%
4 Year 12.50%
6 Year 12.625%
9 Year 12.75%
14 Year 12.875%
30 Year 13.25%
Maturity Real Rate
12 Year 2% step to 4.00%
20 Year 2% step to 4.25%
Maturity* Margin Index / Pay Initial Fix Initial Fix Period
1.5 Year 1.0% 1 Month 11.75% 3 Month
2.5 Year 1.0% 1 Month 11.75% 3 Month
3.5 Year 1.0% 1 Month 11.75% 3 Month
5 Year 1.25% 3 Month 11.75% 6 Month
7 Year 1.375% 3 Month 11.75% 6 Month
8 Year 1.375% 3 Month 11.75% 6 Month
10 Year 1.50% 3 Month 11.75% 1 Year
16 Year 1.50% 3 Month 11.75% 1 Year
22 Year 1.50% 3 Month 11.75% 1 Year
Maturity Yield
3 Year 6.75%
4 Year 7.00%
6 Year 7.25%
Fixed Rate Variable Rate
USD CPI* Variable bonds are callable after certain dates
Fixed Rate, USD, and CPI bonds are not callable
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Government of JamaicaGovernment of Jamaicazx
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Example Allocation Rules by Maturity – Table 2
Example New Bond Election Options for Fixed Rate Bonds:
GroupMaturity Range of Old Notes
Short FR Package*
3Y Fixed 4Y Fixed 6Y Fixed 9Y Fixed14Y
Fixed30Y
Fixed
FR-A 2/17/2010 - 12/31/2010
x x x x x
FR-B 12/31/2010 – 6/30/2011
x x x x
FR-C 6/30/2011 – 12/31/2012
x x x
FR-D 12/31/2012 – 12/31/2014
x x
FR-E 12/31/2014 – 12/31/2017
x
FR-14 12/31/2017 - 12/31/ 2024
x
FR-30 After: 12/31/2024 x xFull “lookup” list will be posted on the website with all choices by each bond. If you have any doubt please call your broker or the Ministry of Finance.
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Government of JamaicaGovernment of Jamaicazx
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$100
$0
$40
$80
$120
2023 2024 2025
Reallocation Rules – Summarized in Table 1
$50bn cap
Reallocation Option ExercisedHypothetical Elections
The government may exercise its reallocations in the amortization profile if it exceeds the $50bn cap
Example above: 14Y FR can be split into 3 bonds with the same coupons– 30% New Fixed Rate 13.0Y
– 40% New Fixed Rate 14.0Y
– 30% New Fixed Rate 15.0Y
$30$40
$30
$0
$40
$80
$120
2023 2024 2025
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Government of JamaicaGovernment of Jamaicazx
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Questions & Answers