$682m. Nipdec bond issue oversubscribed
The $682 million bond issue was oversubscribed by over $400 million. There certainly is a lot of loose cash around.
The National Insurance Property Development Company’s (NIPDEC) July 21 $682 million bond issue has been oversubscribed- further evidence of the amount of loose cash around, despite all the “ole talk” of recession and poor business.
Big business and the wealthy rushed to snap up the 13-year bonds which carries an interest rate of 6.8 per cent, offering almost $1.1 billion for the issue. This is the second major bond issue this year: three months ago the Government floated a $1 billion issue to finance its budget deficit.
The NIPDEC issue will be used to upgrade roads and to finance the new Driver and Licensing Authority and bondholders will receive interest payments twice yearly, the first payment will be made on January 21.