Hylton

The Port Authority of Jamaica will be tapping the international market for funds, but said this week that its plans for the bond placement, including timing and the size of the offer, would rest on advice from its consultants.

The Noel Hylton-lead Port Authority of Jamaica (PAJ) is procuring the services of Allen and Overy as legal counsel, under a US$350,000 ($25 million) contract already endorsed by the National Contracts Commission.

The bond proceeds are meant to refinance some of the Port Authority's existing debt, spokesman Pat Belinfant said, while at the same time extending the maturity profile of the PAJ's long-term liabilities to ease its debt servicing costs.

"Except for the purpose of raising the funds, which is primarily to refinance certain long-term debt, to get longer tenors, we are at the early stage of the process and do not have all the necessary approvals in place," said Belinfanti.

Refinance long-term liabilities

However, it has already been announced that the PAJ hopes to refinance as much as $10 billion of its long-term liabilities this year, which could see the placement targeting a take up of US$140 million to US$150 million.

The Port Authority's debts are expected to reach $32 billion this year.

Belinfanti previously said the agency had liabilities extending 25 years.

The agency, which is putting the final touches on its expansive programme that doubled the capacity of the port to 3.2 million TEUs but put pressure on its balance sheet, is about to take on another big project, the Falmouth Cruise Pier.

The US$270 million development, which the PAJ refers to as 'Project Jenny', is a partnership between Jamaica and Royal Caribbean Cruise Line.

business@gleanerjm.com