STATEMENT BY THE ATTORNEY GENERAL AIYAZ SAYED-KHAIYUM AT A PRESS CONFERENCE ON FIJI GOVERNMENT GLOBAL BOND 2011
The government has, today, priced a record-breaking US$250 million (F$500 million) 5 year at 9.00% international bond transaction via sole lead-manager and bookrunner, ANZ.
This is the second global bond issuance by the Fijian government. The first international bond was raised in September 2006 with a sum of US$150 million (F$300 million), which will mature in September this year.
Fiji's international investor profile was significantly broadened following a week long international roadshow across Hong Kong, Singapore and London in February that brought government officials in front of over 85 international fixed income investors via 1-on-1 meetings, group luncheons and an on-line investor presentation.
The road show presentation was led by the Attorney General, together with the Permanent Secretary for Finance, the Acting Governor Reserve Bank, and three senior officials from the Ministry of Finance and Reserve Bank.
The transaction was launched in Asia yesterday morning (Tuesday 08/03/2011), and was fully subscribed by midday with the orderbook closing almost 3 times oversubscribed within 12 hours of launch.
The final order book was substantially oversubscribed with over F$1.4 billion bids received (US$683 million) and compromised of 43 investors from 6 countries. “This is a clear indication of the level of confidence that investors in the international market have in Fiji’s economic development and progress, on-going reforms and future prospects”, said the Prime Minister and Minister of Finance.
Asian investors bought 36% of the transaction with Europe and Offshore-US accounts contributing the remaining 64%.
A very high quality orderbook comprised of 69% asset managers, 24% hedge funds, 5% private banks and 2% bank portfolios.
The transaction was successfully executed in the face of challenging international market conditions in the wake of the European sovereign crisis as well as the recent unrest across the Middle East.
The Prime Minister added that the successful execution of this global bond reaffirms government’s commitment towards financing priority capital investments that are earmarked in the 2011 Budget to generate economic activity, macroeconomic stability and a prudent fiscal position in the medium term.
It also demonstrates Government’s willingness to enhance growth through partnership with the private sector in the domestic as well as international market.
The government wishes to acknowledge the support and contribution of the rating agencies, the ANZ Fiji office, state owned enterprises and Government Ministries that submitted information which formed the Fijian story that was marketed during the roadshow.
The overwhelming response is due to the teamwork demonstrated by all parties, who share in this historic achievement.
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