GEDA board approves underwriter selection

by Mindy Aguon

Guam - The Government of Guam is well on its way to pursue a $344 million bond on the market next month. Today, the Guam Economic Development Authority board approved underwriter services with not just one company, but three, who will assist the territory in obtaining the bond that the Calvo Administration is hoping to obtain to pay tax refunds and reduce the deficit. 

GEDA's Lester Carlson says the staff recommended a collaborative effort to get the strengths of Barclays Capital as the senior manager and Piper Jafferay and Citi Group Global to be co-managers of the underwriting services for the Government of Guam. "The embarking upon the strengths the three firms collectively have with not only the institutional marketing with the 50 states, but also in the foreign markets which is kind of a new area for municipal bonds is one of the driving reasons why."

The three companies will work together to fast track putting together a finance package together as the administration is hoping to go out to the bond market as early as next month.