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Jamaica Debt Exchange (“JDX”)

Jamaica Debt Exchange (“JDX”). Individual Investor Presentation . January 19, 2010. Representative. Pamella McLaren Senior Director Debt Management – Ministry of Finance and the Public Service. Introduction . High Levels of Debt. Debt / GDP. Interest as % of Tax Revenues.

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Jamaica Debt Exchange (“JDX”)

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  1. Jamaica Debt Exchange (“JDX”) Individual Investor Presentation January 19, 2010

  2. Representative Pamella McLaren • Senior Director Debt Management – Ministry of Finance and the Public Service

  3. Introduction

  4. High Levels of Debt Debt / GDP Interest as % of Tax Revenues

  5. Programme Framework Fiscal Reform Economic Programme MultilateralFinancial Support and Monitoring Jamaica Debt Exchange (JDX)

  6. Debt Dynamics at a Fork in the Road Uruguay Uruguay Brazil (B+) Belize (B+) Turkey (B-) Ukraine (B) Brazil (B+) Belize (B+) Turkey (B-) Ukraine (B) Pakistan (B) Pakistan (B) Jamaica (B+) Median for Bs Jamaica (B+) Median for Bs Source: IMF, excludes IMF debt

  7. Par for Par J$ 100 Old Notes J$ 100 New Notes + Accrued Interest • New Bonds: • Longer Maturity • Lower Coupon • New Features: Fixed Rate Non-Call Life & CPI Bonds

  8. Choices for All Investors, Subject to Maturity Rules Old Notes New Notes Up to: 10 Choices Fixed Rates “FR” New Fixed Rate 3-Months to 30 Years New Variable Rate 1.5 Years to 22 Years Variable Rate “VR” Up to: 21 Choices Inflation Indexed 12 Year and 20 Year USD Up to: 3 Choices New USD 3, 4 & 6 Year

  9. How do I know which bonds I can choose? • Start with type of Old Note – and check the maturity table • If Fixed Rate Bond (“FR”) look at the maturity of your bond, example 15.75% due August 24 2011 (about 1.5 Years). • Look on Table 2 on page 10 of the document for the row corresponding to this maturity range. You will only have 3 choices in this case: • Fixed Rate 4-Year Bond with 12.50% coupon due 2014 • Fixed Rate 6-Year Bond with 12.625% coupon due 2016 • Fixed Rate 9-Year Bond with 12.75% coupon due 2019 • ALL CHOICES NON-CALL LIFE

  10. Single-Choice “Retail” Window, J$ 5MM or less Old Notes New Notes Fixed Rates “FR” FR 1 Choice VR Variable Rate “VR” 1 Choice USD USD 1 Choice

  11. Submission Forms for Your Old Bond • USD Old Bonds – Blue • Fixed Rate Old Bonds –Yellow • Variable Rate Old Bonds - Green • Data Required: • Name, TRN • Contact Information • Note Series Name, Maturity • Certificate Number and Amount • Delivery Information

  12. Submitting an Offer • You can submit yourself – or submit through your broker • Eligible Investors: Jamaican Residents • Valid Submission: Submission Form + Note Certificate • Submission Form: Selection of New Bonds + Other Info 1 – 10 Certificates • Use Physical Offer Submission Form • Deliver to Bank of Jamaica 10+ Certificates • Use Electronic Offer Submission Form • Deliver to Ministry of Finance

  13. Delivering Certificates Delivering Old Certificates to the Government of Jamaica: • Required for all submissions Receiving New Certificates from the Government of Jamaica: • This can be to your home or to the care of your broker

  14. Transaction Processing Timeline Launch Date Expiration Date Settlement Date January 14, 2010 January 26, 2010 February 16, 2010 Registration & Certificate Delivery • Cancellation of Old Bonds • Credit for New Bonds

  15. Transaction Information Ministry of Finance and the Public Servicewww.mof.gov.jm • Information Memorandum • Investor Presentation • Press Releases • Certificate submission forms and instructions • Electronic submission spreadsheet • Q&A • Clarifications and amendments Bank of Jamaica www.boj.org.jm

  16. New Benchmark Bonds Fixed Rate Variable Rate * Variable bonds are callable after certain dates USD CPI Fixed Rate, USD, and CPI bonds are not callable

  17. Example Allocation Rules by Maturity – Table 2 • Example New Bond Election Options for Fixed Rate Bonds: • Full “lookup” list will be posted on the website with all choices by each bond. If you have any doubt please call your broker or the Ministry of Finance.

  18. Reallocation Rules – Summarized in Table 1 Hypothetical Elections Reallocation Option Exercised $50bn cap • The government may exercise its reallocations in the amortization profile if it exceeds the $50bn cap • Example above: 14Y FR can be split into 3 bonds with the same coupons • 30% New Fixed Rate 13.0Y • 40% New Fixed Rate 14.0Y • 30% New Fixed Rate 15.0Y

  19. Questions & Answers

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