The Cayman Islands Development Bank has announced it is making a public offering of US$12 million of bonds.
The funds raised from the bond issue will be lent to eligible parties for the development of the agriculture, tourism, industrial, housing and education sectors.
Leader of Government Business McKeeva Bush called the occasion an historic day in the development of the Cayman Islands.’
‘The CIDB has created two tiers of bonds, both of which are 100 per cent guaranteed by the Cayman Islands Government.’ He said.
Half of the total bond offering matures in five years, while the other half will be issued in 10-year bonds.
Interest accrues on the bonds at a six-month variable rate of US LIBOR plus .75 per cent for the five-year bond and US LIBOR plus 1 per cent for the 10-year bond.
The minimum investment is US$100,000.
‘This is a very attractive investment vehicle for local persons, perhaps those with nest eggs who are seeking secure investments,’ he said.
Mr. Bush said the rewards of the investment were twofold.
‘Not only is the local investor assured of a certain rate of return, but secondly, this investor will be participating in the economic reality of nation building,’ he said.
Mr. Bush said the CIDB wanted to make the bond available to private investors.
‘There is an abundance of qualified lenders who are eager to lend to the CIDB,’ he said. ‘However, the CIDB is committed, even in its approach to fundraising, to facilitate Caymanian national building by making this bond available to individuals as well as institutional investors.’
Mr. Bush said he was committed to seeing that even ordinary residents who have the means and interest to participate in such risk-free investments are given the opportunity to do so.
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