The government has raised US $1 billion on the international bond market.

The Ministry of Finance made the announcement on Friday.

It says this is the lowest interest rate the country has ever secured on global borrowing.

Tauna Thomas reports.

The bond was priced on Thursday at a coupon of 6.25 percent.

The Finance Ministry says it is Jamaica’s first US-dollar bond issue in more than a decade.

According to the ministry, the issue was oversubscribed about two-and-a-half times, with demand from both overseas and local investors.

The money will first cover a buyback of older, more expensive debt.

Earlier this month, the government invited holders of three global bonds, due in 2028, 2036 and 2039, to sell them back.

Those bonds carry interest of between 6.75 and 8.5 percent, and total about US $2.3 billion.

Investors tendered US $49.1 million worth.

Most of that, 357.6 million, came from the 2028 bonds.

Only $2.1 million worth of the 2036 bonds, the most expensive of the three, was offered.

What remains after the buyback will go towards the government’s financing needs for the 2026-27 fiscal year.

Finance Minister Fayval Williams says less than a year after category five Hurricane Melissa, which caused damage and loss worth more than half of Jamaica’s GDP, investors have chosen to lend at a rate that reflects confidence in the country.

She credits Jamaican families and businesses, who she says earned that confidence through years of difficult fiscal decisions.

The Ministry says it did not buy back bonds at prices it considered too high, so some of the higher-interest debt remains outstanding.

Those bonds will continue to be serviced and may be targeted in future deals, depending on market conditions.