BOJ schedules J$37 billion certificate-of-deposit auction for October 14

Bank of Jamaica has announced a J$37 billion fixed-rate certificate-of-deposit auction for October 14, with settlement scheduled for October 16 and maturity on November 13, 2026.

The October 12 release names the instrument “6.25% BOJ FR 30D-CD 20261016”. Although the product label refers to 30 days, both the notice and term sheet specify a 28-day tenor. That is the stated period from settlement to maturity; the article retains it rather than treating the product label as the actual duration.

The coupon is fixed at 6.25% per annum. A coupon describes the instrument’s stated interest rate, while the annual basis matters when considering a much shorter term. The rate is not a 6.25% return over the 28 days.

Interest will be paid at maturity on November 13 and is subject to withholding of taxes. Principal and interest payments will be made through accounts in JamClear-RTGS, the central bank’s real-time payment system.

The announcement concerns an upcoming operation. It does not report the bids received, the amount ultimately allotted or the issue price, which will be determined through competitive bidding.

The term sheet divides the J$37 billion offer into J$35.15 billion on a competitive basis and J$1.85 billion on a non-competitive basis. All bids from public-sector entities must be non-competitive, while bids from other entities must be competitive.

Non-competitive allotments will be settled at the weighted average price of successful competitive bids. That connects their price to the competitive auction rather than allowing those bidders to choose their own pricing terms.

BOJ says allocation may be subject to a reserve yield. Bids above the reserve price yield will not qualify for allocation, so submitting an application does not guarantee an allotment.

The instrument is available directly to Primary Dealers and commercial banks. Other investors can access it through a Primary Dealer. BOJ describes Primary Dealers as designated securities dealers that serve as channels for government debt issuance and the central bank’s market operations.

Applications are to be submitted through JamClear-CSD between 9:30am and 10:45am on October 14. The minimum application value is J$100,000. JamClear-CSD is the sole legal registrar for these securities, keeping their formal registration within that system.

Settlement will occur through JamClear-RTGS accounts at BOJ on October 16. The next scheduled stage is therefore the October 14 bidding process, followed by settlement and the November 13 repayment and interest date.