The Government of Barbados has announced the issue of two bonds, one a debenture and the other Treasury notes to raise BDS$150 million in total, starting on the 24th June.
The debenture which will open on Monday, June 24, 2013 and will be issued at par with a fixed interest rate of 6 7/8% per annum payable on June 30 and December 31 of each year and is targeted to raise BDS$100 million.
The Treasury Notes targets BDS$50 million and will be issued at par with a fixed interest rate of 4 1/8% payable on June 30 and December 31 of each year. The Treasury Notes will be repayable at par on June 30, 2015.
The interest due on both instruments to Pensioners 60 years and over residing in Barbados will not be subject to withholding tax. Non-residents seeking tax exemption must satisfy the Commissioner of Inland Revenue of their status before exemption is granted. However, for all persons resident in the island, the interest from these Debentures will be taxed separately from other income at a rate not exceeding 12½%. These Debentures will be repayable at par on June 30, 2024. The issue will remain opened until the Central Bank advises that it has been fully subscribed.
