30 January 2026
In a major financial manoeuvre aimed at refinancing maturing debt and strengthening its fiscal outlook, the Government of Trinidad and Tobago has successfully issued a US$1bn 10-year senior unsecured sovereign bond.
The transaction, which matures on 28 January 2036, and carries a 6.50% coupon, was oversubscribed by 2.5 times, drawing over US$2.4bn in demand from international investors.
The bond, arranged by JP Morgan and Bank of America, will pay interest semi-annually and is intended primarily to refinance a US$1bn bond due in August 2026, originally issued under former Finance Minister Colm Imbert in 2016.
The remainder of the proceeds will be used to support general budgetary needs. The new issuance extends the country’s external debt maturity profile, increasing the average maturity from 4.1 to 6.3 years.
Finance Minister Davendranath Tancoo hailed the issuance as a major success, both in fiscal terms and as a statement of confidence in the country’s economic management. “The successful issuance represents a clear validation of the sovereign’s credit fundamentals and new disciplined policy framework,” said Tancoo.
“Achieving pricing tighter than benchmarks, while also attracting an order book 2.5 times the final issue size in the US market, reflects sustained investor confidence in the credit and improved risk perception of the new Government of the Republic of Trinidad & Tobago,” the Finance Minister added.
The announcement comes at a time when Trinidad and Tobago carries negative outlooks from both Standard & Poor’s and Moody’s. Despite this, the bond attracted strong and diversified investor demand, with over 144 unique investors, up from 93 in the 2024 issuance. During the three-day roadshow starting 16 January, Tancoo and Central Bank Governor Larry Howai met with more than 50 global fixed-income investors. When books opened in New York, demand surged quickly.
Tancoo underscored that the bond “leverages over 140 unique orders from top accounts” and that the transaction “meaningfully enhances the country’s funding profile and supports continued engagement with global investors on increasingly favourable terms.” He also pointed out the achievement of “the largest bond transaction in the past ten years for the Republic of TT” and “the largest order books in the last five years of US$2.4bn despite two negative ratings outlooks.”
Pricing ultimately compressed by 20 basis points from initial guidance, closing at 98.552%, 54.6 basis points tighter than the 2016 issuance it replaces. Compared to other recent Caribbean bond issues, Trinidad and Tobago’s terms appear favourable. “The Bahamas…went to market with a ten-year US$1.67bn bond…with a coupon rate of 8.25%. Barbados…with a fixed rating of B+ went to market with a US$500mn bond…at 8%. Additionally, Dominican Republic’s 12-year US$2bn bond generated a 6.9% coupon,” Tancoo noted.
He concluded that “international investors continue to place Trinidad and Tobago in a higher quality bucket even amid elevated global rates and recent outlook revisions.” However, some analysts point out that recent and expected US Federal Reserve interest rate cuts likely played a role.
The bond was issued under Rule 144A and Regulation S, targeting qualified institutional buyers in the US and international markets. As per standard practice, the notes are exempt from local taxes and exchange controls, ensuring smooth trading in global markets.
However, the road ahead is not without risk. S&P recently affirmed the country’s BBB- rating but revised the outlook to negative, warning of possible downgrades within six to 24 months without reforms to strengthen public finances and bolster non-energy growth.
Tancoo acknowledged these challenges but insisted that the government is addressing them through a combination of tax reform and energy-sector partnerships. “We have been putting in place measures for that exact purpose…we expect that those revenue streams…would be generating sufficient foreign exchange so that when the bond becomes due in fiscal 2026, that the country will be in an appropriate comfortable place to meet its financial obligations.”
The bond issuance marks another chapter in Trinidad and Tobago’s evolving presence in global capital markets. Once a darling of investors during the energy boom years, the country’s creditworthiness has since been dented by energy sector decline, fiscal slippage, and foreign exchange constraints. Yet, this oversubscribed bond demonstrates that the country still commands strong investor interest—albeit at a higher cost.
In today’s global environment, every basis point matters. On a US$1bn issuance, a 50 basis point increase translates to an additional US$5mn annually in interest expense. As one analyst summarised, “Trinidad and Tobago remains creditworthy, but creditworthiness is not binary, it is priced on a continuum.”
Source: Caribbean Insight – Volume 48, Issue 2