(Trinidad Express) The CLICO Policyholders Group said yesterday it was disappointed that the Government is yet to disclose the specific purpose for a recent TT$2 billion, 15-year fixed rate bond.
“We are not surprised by the overwhelming response of the financial community including individual investors, given the dearth of public Government of the Republic of Trinidad and Tobago bond auctions and the significant liquidity overhang that continues to pervade the system,” group chairman Peter Permell said in a statement.
“Moreover, the mere fact that the bond was oversubscribed to the tune of approximately 2.8 times, with total bids received amounting to $5.6 billion, and eventually had to be upsized to TT$2.5 billion underscores this very point.
“And whilst, we have not done any in-depth analysis with respect to the impact, if any, that this particular bond could have on the price and/or value of GORTT (CLICO) one to ten-year Zero-Coupon bonds previously issued to policyholders, we are not overly concerned at this time but this sentiment could change with the advent of further bond issues by the Government.”
He said the group will continue to monitor the situation and will be paying close attention to the budget presentation on Monday.
“We are also asking policyholders who may wish to cash in their one to ten-year bonds but might not have done so as yet, to be very vigilant going forward,” Permell added.
