Bond loans haul in USD 550 million“It is a good result”
The government reportedly managed to haul in USD 550 million with its bond loans at an interest rate of 9.25%. The government had initially aimed at hauling in USD 1.5 billion max but Finance Minister Gillmore Hoefdraad explained that USD 550 million would be sufficient. Minister Hoefdraad assured that the money would not be used for consumer purposes. The money will instead be used to pay off debts of the State Oil Company (Staatsolie), the Energy Company Suriname (EBS) and other debts of the government. “We do not borrow money for silly things. We will not squander the money,” said the minister who is currently in New York during an interview. The minister has reportedly met with several investors. Staatsolie must reportedly pay off USD 300 million for the construction of its refinery. Due to a drop in the price of crude oil, the company could not make its payments on time. The government had also aimed at hauling in at least USD 500 million at an interest rate of 9.5% but eventually got USD 550 million at an interest rate of 9.25%. “We are pleased with the result. It is a good result,” said Minister Hoefdraad.
The government had reportedly given Oppenheimer and Scotia Bank the mandate to organize a series of meetings with investors who are interested in buying US dollardenominated government bonds. It is still unclear how much commission the two brokers will receive. Minister Hoefdraad promised to share more information after he has arrived back in Suriname.