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- The Bahamas completed a 13-year, US$1.1 billion international bond issuance and associated liability management exercise, the Ministry of Finance said.
- The issuance was 3.2 times oversubscribed at its peak, with a re-offer yield and coupon of 7.70 percent after 40 basis points of tightening, according to the ministry.
- The ministry said the transaction reduces scheduled principal repayments by at least US$331 million through the end of 2029.
- The ministry said the yield was more than 50 basis points lower than the June 2025 issuance despite a longer tenor.
- The ministry cited Moody’s upgrade to Ba3 in April 2026 and Fitch and S&P affirmations of BB- with stable outlooks.
The Bahamas has completed the issuance of a 13-year, US$1.1 billion international bond and an associated liability management exercise, the Ministry of Finance said, in a transaction that refinances outstanding Eurobond series and certain government and energy sector bank facilities.
According to the ministry, the issuance attracted strong investor demand, with a peak order book 3.2 times oversubscribed. That demand allowed for 40 basis points of tightening from initial price thoughts to a re-offer yield and coupon of 7.70 percent.
“The US$1.1 billion issuance attracted strong investor demand, with a peak order book 3.2 times oversubscribed, allowing for 40 basis points of tightening from initial price thoughts to a re-offer yield and coupon of 7.70 percent,” the ministry said.
The ministry said the transaction benefited from a two-day roadshow during which the government engaged with more than 95 investor accounts across North and Latin America, Europe, the Middle East and Asia-Pacific. It described the new issuance and associated liability management exercise as a significant step in advancing the government’s debt management objectives.
On refinancing risk, the ministry said the transaction was a proactive reduction through the expected make-whole redemption of the 2028 and June 2029 Eurobond series. It said this reduces scheduled principal repayments by at least US$331 million through the end of 2029, with further reductions depending on final repurchase levels for the November 2029 series.
The ministry said the aim is the refinancing of legacy indebtedness and short-term facilities in strategic sectors, and supporting proactive management of The Bahamas’ public sector debt profile.
The transaction achieved a yield reduction of more than 50 basis points compared with The Bahamas’ June 2025 issuance, despite a longer tenor, the ministry said. It said this is equivalent to a spread contraction of approximately 150 basis points for a comparable maturity.
“This favorable repricing reflects the strengthening of The Bahamas’ credit profile, also evidenced by Moody’s upgrade to Ba3 in April 2026 and the affirmations by Fitch and S&P of BB- in April and September 2026, respectively, all with stable outlooks,” the ministry said.
The ministry said Rothschild & Co and Hogan Lovells Cadwalader served, respectively, as financial advisor and international legal counsel to the Ministry of Finance. BNP Paribas, J.P. Morgan, Scotiabank and Standard Chartered Bank served as Global Coordinators and Joint Bookrunners.
The ministry’s account provides detailed figures on pricing, demand and repayment reductions, but the evidence available does not include independent corroboration of those figures or a full breakdown of the final allocation of proceeds among the refinanced facilities.