NASSAU, Bahamas, June – The Bahamas authorities said on Wednesday that it has accomplished the execution of a world capital markets transaction, which included the issuance of an 11-year, US$1.067 billion bond to fund the repurchase of US$767 million in excellent Eurobonds.
An announcement from the Workplace of the Prime Minister mentioned that as a part of the transaction, authorities carried out a three-day investor roadshow, reaching over 60 accounts from North America, Europe, and the Center East.
It said that individuals expressed robust assist for The Bahamas’ credit score fundamentals, ongoing fiscal consolidation, and financial outlook, which drove optimistic transaction outcomes.
The US$1.067 billion new issuance benefited from supportive demand dynamics, closing with an order e-book that was 3.9 occasions oversubscribed and a closing coupon and re-offer yield of 8.250 p.c, the federal government mentioned, including that this transaction additional consolidates the favorable repricing of The Bahamas’ worldwide yield curve.
It mentioned the legal responsibility administration operation prolonged the typical maturity of excellent Eurobonds by 2.1 years and diminished principal repayments by US$451 million over the following three years.
“Proceeds from the brand new issuance can be primarily allotted to fund the related legal responsibility administration operation, with a portion anticipated to assist nationwide improvement priorities, together with infrastructure investments,” the federal government mentioned.
It mentioned that this transaction marks The Bahamas’ first return to worldwide capital markets since 2022 and follows optimistic score actions by Moody’s and Fitch in April 2025.
“The operation is a part of a complete exterior financing technique geared toward diversifying funding sources and follows the profitable execution of business financings with progressive credit score enhancement mechanisms, together with theUS$300 million Debt Conversion Mission for Marine Conservation closed in November 2024 and the US$500 million worldwide mortgage supported by a US$200 million Inter-American Improvement Financial institution assure in January 2024. ”
The federal government mentioned that Rothschild & Co and Hogan Lovells served, respectively, as sole monetary advisor and worldwide authorized counsel to the Ministry of Finance. In distinction, BNP Paribas, Citi, and Deutsche Financial institution served as World Coordinators and Joint Bookrunners, with CIBC FirstCaribbean serving as Joint Bookrunner.
