It is not an easy task to go to the international capital markets and issue government bonds, and receive a huge response.
Those are the words of ANZ's General Manager, Norman Wilson who said international investor interest in Fiji has grown tremendously due to improved credit ratings assessed by independent international agencies and foreign investors liking the Fiji story on where the country's economy is expected to head with huge opportunities in the mining sector and other industries.
As announced earlier this week, the Fijian Government has managed to raise a record breaking US$250 million through a 5 year global bond transaction at an interest rate of 9 percent, via sole lead Manager and book runner, ANZ.
When the Fiji government bonds were placed as a transaction in the market in Asia, it was over-subscribed with over $1.4 billion worth of bids and comprised of 43 investors from 6 countries.
Asian investors bought 36 percent of the transaction with Europe and Offshore US accounts contributing the remaining 64 percent.
Wilson said the affirmed credit rating assisted Fiji a lot.
Wilson confirmed that the interest rate for the US$150 million government bond in 2006 was lower however a number of factors need to be taken into account for this one.
He said the investor confidence in Fiji is also a major advantage.
Wilson also explained why Fiji had to borrow the funds through this process, and not domestically.
This is the second bond issued by the government.
The first international bond issued was in September 2006 amounting to US$150 million which matures in September this year, and will be fully settled by the government.
The remaining US$100 million will be used in various capital projects by the Government.
Story by: Vijay Narayan
Feature
Tremendous growth in international investor interest
