(Trinidad Guardian) The Government announced yesterday that it proposed to issue a TT$1.5 billion, 20-year bond to finance payouts to Clico policyholders, according to an information memorandum issued yesterday. The bonds, which will be fixed rate with a coupon rate of 6 per cent, will be used specifically to fund the payment of TT$75,000 to all the holders of the short-term investment products issued by Clico and British American.
In the information memorandum, the Government said that it was also “mindful of its role in the development of the local capital market and, in particular, the development of the government bond market.” The bonds will be dated November 22, 2011 and the interest will be paid twice a year in November and May. The bonds are eligible for inclusion in the statutory fund of insurance companies and will be considered as assets in and originating in T&T within the meaning of sections 46 (1) and 186 (1) respectively of the Insurance Act.
