BOJ offers USD certificates of deposit
Published:Monday | February 6, 2017 | 12:00 AM
The Bank of Jamaica said it will be offering three US dollar certificates of deposit (CDs) to the market between February 9 and 15.
However, the Bank said it reserves the right to close the offer before 12:30 p.m. on Wednesday, February 15, the final date for receiving bids.
The offer on one of the instruments is for an unlimited amount with a tenor of three years, and a fixed coupon of 2.65 per cent per annum, which is 1.16 percentage points above the current rate of 1.49 per cent on three-year US Treasury.
Another of the instruments is for an unlimited amount with a tenor of five years and offers a fixed coupon of 3.6 per cent per annum or 1.67 percentage points above the current rate of 1.93 per cent on five-year US Treasury.
The third is also for an unlimited amount with a tenor of seven years and offers a fixed coupon of 4.3 per cent per annum or 2.03 percentage points above the current rate of 2.27 per cent on seven-year US Treasury.
All the coupons are paid semi-annually.
The instruments are available directly to primary dealers and commercial banks. Other investors may access them through a primary dealer.