Govt offers debenture and treasury note
A $75 million debenture and a $100 million treasury note came on the market simultaneously today, both due to be issued on January 1, 2015.
The debenture, which will be repayable on December 31, 2034, will have a fixed interest rate of 7.75 per cent while the treasury note will be repayable on June 30, 2018 with a fixed interest rate of 4.375 per cent.
Interest rates on both are payable on June 30 and December 31 of each year.
The Central Bank today made the announcement, saying that the offers were open to both residents and non-residents.
“The interest due to pensioners 60 years and over residing in Barbados will not be subject to withholding tax. Non-residents seeking tax exemptions must satisfy the Revenue Commissioner of their status before exemption is granted. However, for all persons resident in the island, the interest from these debentures will be taxed separately from other income at a rate not exceeding 12.5 per cent.”
The Central Bank said the issues would remain open until fully subscribed.
One economist told Barbados TODAY that if Government should have any concern regarding subscription it would be “about how well subscribed the short-term notes would be versus the debentures”.