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Second Tranche of Municipal Development Bond launched Print E-mail
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Written by Administrator   
Thursday, 23 May 2013 00:00

Mayor Darrell BradleyThe Belize City Council announced on Wednesday that the second tranche for the Belize City Municipal Development Bond has been launched. The second tranche is for 5 million dollars and will see the continuation of street paving and other infrastructural work in Belize City.


The bond was structured in three tranches. The first had three portions for 2 million dollars at an interest rate of 3.5% for two years. Another portion was for $3 million dollars bearing interest at 5.5% and a maturity of 5 years, and a third portion for $5 million with an interest rate of 8% for 10 years.

The second tranche, which was launched on Wednesday, also has three portions. The first is for 1 million dollars at an interest rate of 3.5% per annum for two years. The second is for 2 million dollars at an interest rate of 5.5% per annum for 5 years, and the third is for 2 million dollars at an interest rate of 8% for 10 years.

The third tranche has two portions, the first being for 2 million dollars and carrying interest rate of 5.5% for 5 years, and the second portion is for 3 million dollars and carries an interest rate of 8% for 10 years.

The City Council has completed the investment of the first 10 million dollars and is now moving to invest the second tranche of 5 million dollars.

According to the City Council prospectus, interest on the bonds will be calculated on a semi-annual basis and will be payable on June 1 and November 1 each year starting this year.

It is noteworthy that Mayor Darrell Bradley arrived back into the country after being in Uganda where he attended a number of meetings in which the Municipal Development Bond featured prominently and in which requests were made to have Belizean consultants assist in the launching of a similar bond offering in that country.