ISSUE OF $50,000,000 BARBADOS GOVERNMENT – 7¾% DEBENTURES 2030

ISSUE OF $50,000,000 BARBADOS GOVERNMENT – 7¾% DEBENTURES 2030

The Loan is being raised to assist with the financing of the Development Plan

Debentures under this issue will be in denominations of one thousand dollars or a multiple thereof and will before being issued, be recorded in the Register of Securities at the CENTRAL BANK OF BARBADOS.  Each Debenture and the right to receive principal and interest represented thereby will be transferable.  Debentures are eligible securities for trading on the Securities Exchange of Barbados.

The interest due to Pensioners 60 years and over residing in Barbados will not be subject to withholding tax.  Non-resident holders seeking Tax exemption must satisfy the Commissioner of Inland Revenue of their status before exemption is granted.  However, for all other persons resident in the Island, the interest from the Debentures will not be aggregated with other income, but will be taxed separately at a rate not exceeding 12½%.

This loan is secured on the Consolidated Fund and assets of the Government of Barbados.  A sinking fund will be established by half-yearly appropriations out of the Consolidated Fund with accumulations of interest to enable the Debentures to be redeemed when they fall due.

The Debentures will be repayable at par on July 31, 2030.

The Public Debt of Barbados at March 31, 2010 was $7,573.3 (P) million of which Treasury Bills outstanding stood at $936.0 million.

Persons with pension funds who have exercised their option to purchase this Government security should apply directly to the Central Bank of Barbados.

Applications in the prescribed form must be addressed to the Director, Banking, Currency & Investments Department, Central Bank of Barbados, Tom Adams Financial Centre, P.O. Box 1016, Spry Street, Bridgetown.  Payment may be made on or after allotment and must be made not later than the first day of the month following that in which the allotment is made. Interest on such amounts will accrue from and including the first day of the month following that in which the allotment is made.  For payment under BDS$100,000.00 crossed cheques can be made payable to the Central Bank of Barbados and may be drawn on any commercial bank operating in Barbados.  However, all payments for securities of nominal value BDS$100,000.00 and over must be settled through Real Time Gross Settlement (R.T.G.S.) Payment Systems.   To effect this payment, the applicant should request any commercial bank operating in Barbados to make the transfer on his/her behalf to the Accountant General account at the Central Bank of Barbados.

Prospectuses and application forms may be obtained from the Central Bank of Barbados, the Accountant General’s Department and commercial banks.

This prospectus is issued by the Central Bank of Barbados on behalf of the Government of Barbados.