Nassau, The Bahamas – The Commonwealth of The Bahamas (The Bahamas) has successfully completed the execution of an international capital markets transaction, which included the issuance of an 11-year, $1.067 billion USD-denominated bond to fund the repurchase of $767 million in outstanding Eurobonds.
As part of the transaction, authorities conducted a three-day investor roadshow, reaching over 60 accounts from North America, Europe, and the Middle East. Participants expressed strong support for The Bahamas’ credit fundamentals, ongoing fiscal consolidation, and economic outlook, driving positive transaction outcomes.
The $1.067 billion new issuance benefited from supportive demand dynamics, closing with an orderbook that was 3.9 times oversubscribed and a final coupon and re-offer yield of 8.250%. This transaction further consolidates the favorable repricing of The Bahamas’ international yield curve.
The liability management operation extended the average maturity of outstanding Eurobonds by 2.1 years and reduced principal repayments by $451 million over the next three years. Proceeds from the new issuance will be primarily allocated to fund the associated liability management operation, with a portion expected to support national development priorities, including infrastructure investments.
This transaction marks The Bahamas’ first return to international capital markets since 2022 and follows positive rating actions by Moody’s and Fitch in April 2025. The operation is part of a comprehensive external financing strategy aimed at diversifying funding sources and follows the successful execution of commercial financings with innovative credit enhancement mechanisms, including the $300 million Debt Conversion Project for Marine Conservation closed in November 2024 and the $500 million international loan supported by a $200 million Inter-American Development Bank guarantee in January 2024.
Rothschild & Co and Hogan Lovells served, respectively, as sole financial advisor and international legal counsel to the Ministry of Finance. BNP Paribas, Citi, and Deutsche Bank served as Global Coordinators and Joint Bookrunners, with CIBC FirstCaribbean serving as Joint Bookrunner.
Media Inquiries:
opmcommunications@bahamas.gov.bs