The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

A deal well worth the wait

For one emerging-markets issuer at least, the US-led invasion of Iraq has proved a bonus.

On January 21, the Government of Jamaica launched and priced a five-year, e200 million benchmark bond. Commerzbank Securities and Deutsche Bank were joint lead managers.

Jamaica wanted to do the deal 12 months ago, but worries about Iraq forced it to wait. Tourism accounts for by far the largest single chunk of Jamaica's exports of goods and services – 37% of the $3.2 billion total in 2002. If there was a war, investors feared, anxious Americans would not take foreign holidays and all destinations would suffer.

By the end of the summer, it was clear that they had only got it half right. Fewer US holidaymakers were travelling to Europe. But more were travelling to nearby destinations such as the Caribbean.

Bounce-back from two-year dive "Investors thought that the war would be a very negative development for Jamaica," says Roman Schmidt, Commerzbank Securities' global head of debt capital markets. "But six months later, tourist receipts were actually up." From January to September 2003, visitors to Jamaica spent around $970 million, reversing a two-year decline.

Armed with this information, a Jamaican team including minister of finance and planning Omar Davies, spent the last week of November on a non-deal roadshow in eight European cities.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree