Citco floats a $20 Million Bond Print E-mail
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Thursday, 14 June 2012 00:00

Mayor Darrell BradleyThe Belize City Council is in the process of floating a municipal bond to finance infrastructure projects in the city including the paving of streets. At his presentation of the council's 100-day accomplishments, Mayor Darrell Bradley announced that the council is in the process of floating a 20-million-dollar bond that will be used to finance infrastructural development in the city.

Bradley says there is already interest in the bond as banks, and insurance companies have already expressed interest. He added that pitches will also be made to other financial institutions like the Development Finance Corporation and the Social Security Board. The Mayor says that the council is currently in the process of preparing a prospectus  ,which will include the council's financial statements as well as the plans on how the bond will be paid back and what the finances will be used for. That prospectus is expected to be released by July of this year.

If all goes well, the first tranche for the bond amounting to 8 million dollars will be offered. When the finances are secured, the money will be used to pave major streets in the city such as Freetown Road, Barrack Road, Hydes Lane, North Front Street, Queen Street and others.  Thereafter, a second tranche will be released to continue infrastructural development and tthen a third one will be put out. The third will focus on a revenue component, which will see that third section paying for itself. Among other revenue generating areas the council will be looking at improving  is the entrance into Belize City with the goal to have a toll levied on those commuting into the city. The bond will also be supported through other revenue streams that will be put in place by the council like a 10-dollar fee, which will be paid monthly by residents for the collection of garbage.

Bradley says that the selling point for the bond is that those financing the bond will be appealed to as being part of the city and being a part of the development of the city.