Barbados is making its annual trip tothe international capital markets a bit earlier this year and
has mandated Barclays Bank Plc to arrange a 25 mln stg
revolving credit, Barclays said.
    The financing will be for seven years, with four years
grace, and will allow the borrower to make drawings in U.S.
Dollars. The credit will be transferable and carry interest at
1-1/8 pct over the London Interbank Offered Rate. There is a
commitment fee of 1/2 pct.
    Banks are being invited to join at four mln stg for 50
basis points and at 2.5 mln stg for 40 basis points.
    The terms represent an improvement over those obtained last
year, when Barbados tapped the market for a 25 mln dlr
transferable loan facility, which carried the same maturity but
had interest at 1-1/4 pct over Libor. The facility was
subsequently increased to 40 mln dlrs.
    However, the loan was not signed until November 5, and
bankers said that this year Barbados wanted to have the
financing in place early to give it greater flexibility in
drawing the funds over the course of the year.
    Last year Barbados boosted its capital market borrowings
with a small private yen placement in the Japanese market.
    At the signing of the 40 mln dlr facility, Winston Cox,
advisor to the Central Bank of Barbados, said he was looking to
make greater use of the international capital markets to reduce
the country's dependence on multi-national orgainsations.
    However, bankers believe this will be the country's only
major financing for this year, although another small private
placement in Japan could be arranged later in the year.
 REUTER
