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Government Successful at Issuing a Benchmark US$750 Million Bond Issue

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#Bahamas, November 18, 2017 – Nassau – Deputy Prime Minister and Minister of Finance the Hon. Peter Turnquest gave details in the House of Assembly of the Government’s recent success at issuing a benchmark US$750 million bond issue, which has been opened to the markets and priced, and is expected to close on November 21, 2017.    He made the statement on Wednesday, November 15, 2017.

DPM Turnquest also took the time to set the record straight in response to numerous reports in the Press and social media about the transaction, which characterised it as “lacking in transparency and fiscal prudence.”

“Nothing could be further from the truth.    There was absolutely nothing devious, surreptitious or imprudent about this transaction or the manner in which it was handled.    There are certain ways these transactions are handled in the international market, and we are appropriately guided by our investors in this regard,” he told the Members of Parliament.

DPM Turnquest explained that all of the Government’s financing activities are conducted within the constraints of its approved borrowing authorities, and shaped and informed by pragmatic debt management strategies.

“These strategies, for example, take into consideration the size and currency composition of the Government’s financing requirements; the identification, analysis and preferences of potential funding sources—whether it is best to source the debt in domestic or foreign currency; and, of course, with due consideration to market liquidity, cost and risk factors.

“To be sure, such analysis and evaluation requires interaction with other agencies—especially our bankers, and most certainly the Central Bank.   As is customary, we collaborate very closely with the Central Bank, which manages the issuance of government paper in the domestic market, for advice on domestic liquidity conditions—how much excess loanable funds are in the system, and what is the appetite of the main investors in government paper—the banks and institutional investors (pension funds and the insurance companies) to increasing their holdings.”

He said these factors, including foreign reserves considerations, not only influence the timing and size of potential issues, but also determine decisions on whether borrowings are undertaken in domestic or foreign currency.    Such decisions involve serious and considered deliberations by the Government in managing the country’s debt.   The DPM noted that during the 2017/18 Budget Communication, two borrowing resolutions were approved by the House.

The first covered the additional funding approval of $400 million to settle the outstanding arrears for FY2016/17 and the second was in respect of FY2017/18, and provided for financing to cover the overall budget deficit, estimated at $322.3 million, and refinancing/debt repayment obligations, which are now projected at $600.2 million.

He said, “Therefore, while the total borrowing envelope under these two approved resolutions totaled approximately $1,322.7 million, the increment to the outstanding debt was and remains $722.3 million, as the $600.2 million in refinancing/debt repayment would have a neutral impact on debt levels.”

DPM Turnquest also noted that it is instructive to mention, that, at the beginning of each Fiscal Year, one of the first things that the Government sets out to do, through its Treasury Department, is to develop monthly cash flow projections—based on how it perceives the evolution of revenue performance and the timing of its outlays.

“These projections are calibrated, on an ongoing basis, to ensure that there are sufficient funds available to meet the Government’s budgetary requirements, as and when needed.

“It is now common knowledge that there were pressing funding needs at the end of the past fiscal year and the outset of the current period, which placed an urgent requirement on policymakers to identify immediate funding sources to meet these obligations.”

He said after an evaluation of the funding options, the Government moved expeditiously to source several short-term bridging facilities, which included US Dollar bank credits ($450 million) and domestic treasury bills and bank advances ($300 million).

“I want to emphasize that these facilities were always contemplated to be short-term in nature, with a subsequent “terming out”, i.e., lengthening of the maturities to achieve a more favourable debt servicing profile. And having considered conditions in the domestic market, and the number of significant rollovers contemplated, the intention was to explore the possibility of rolling up these short-term credits into an international bond issue.”

The bonds, characterized as a 10-Year weighted average life bond, was priced at a coupon or interest rate of 6.00 per cent, which is some 250 basis points above the pricing obtained in the Government’s last bond issuance in 2014 when it enjoyed investment grade credit status.

It is to be repaid in three equal annual installments, commencing on November 21, 2026, and with a final maturity on November 21, 2028.   T he 6.00 per cent yield is equivalent to a spread of 362.1 basis points above the US Treasury’s 10-year benchmark bond.

The Deutsche Bank Securities Inc. and RBC Capital Markets, LLC. managed the offer as joint book runners.

By: Llonella Gilbert (BIS)

 

 

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Walker Confirmed as U.S. Ambassador to The Bahamas: A Partner in America’s Extended Family

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By Deandrea Hamilton | Magnetic Media

 

The United States and The Bahamas share more than proximity — they share a bond of history, trade, and culture that Washington’s newest diplomat calls “part of America’s extended community.”

Now, for the first time in 14 years, the U.S. Embassy in Nassau will again be led by a Senate-confirmed ambassador. Herschel Walker, the Heisman-winning football legend turned entrepreneur, has been confirmed by the U.S. Senate as America’s official envoy to The Bahamas.

Walker, who will oversee one of the Caribbean’s most strategically positioned U.S. missions, told senators during his confirmation hearing that The Bahamas will play a key role in upcoming U.S. 250th Independence celebrations. “The Bahamian people,” he said, “will be included in this milestone year, because our stories are intertwined — through family, trade, and friendship.”

While his nomination was unconventional, his priorities are anything but vague. Walker vowed to counter growing Chinese influence in the Caribbean, calling Beijing’s investments in Bahamian deep-water ports “a direct threat to U.S. national security.” He pledged to work closely with Bahamian authorities to ensure American interests remain the region’s cornerstone.

“There’s a rise in drug smuggling in The Bahamas, and this is a real danger to the United States,” Walker said, referring to the Operation Bahamas, Turks and Caicos (OPBAT) partnership. He promised to strengthen intelligence sharing, joint patrols, and law enforcement coordination to disrupt trafficking routes that have grown increasingly sophisticated.

But Walker also emphasized opportunity over fear — signaling that his ambassadorship will not only focus on security, but on strengthening The Bahamas as a gateway for U.S. investment, trade, and tourism.

“I will advise the American business community of the vast investment opportunities that exist in The Bahamas,” he said. “And I will make sure the Bahamian government maintains an environment where U.S. companies can invest confidently — because America must prove it is still great as an investor.”

For a small island nation sitting less than 50 miles off the coast of Florida, this renewed diplomatic attention carries weight. Since 2011, the post of U.S. ambassador had remained vacant — a gap that many observers say weakened direct ties, delayed joint security initiatives, and allowed other powers to move in.

Walker’s confirmation — approved 51 to 47 — ends that silence. And with it comes the expectation that this former Olympian and business owner will translate his discipline, charisma, and resilience into diplomatic results.

Critics question his lack of foreign policy experience, but Walker counters with confidence: “Throughout my life, people have underestimated me. I’ve always proved them wrong — by outworking everyone.”

As he prepares to take up residence in Nassau, Walker says his mission is simple: rebuild trust, deepen cooperation, and remind both nations that their futures are tied not just by geography — but by shared purpose, mutual respect, and the enduring ties of community.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.

 

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PAY STANDOFF: Prime Minister Cancels Talks as Unions Warn of More Protests

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By Deandrea Hamilton | Magnetic Media

Monday, October 13, 2025 — Nassau, The Bahamas – What began as a calm holiday meeting has spiraled into a full-blown standoff between The Bahamas Government and two of the country’s most powerful public sector unions — the Bahamas Union of Teachers (BUT) and the Bahamas Public Services Union (BPSU) — after the Prime Minister abruptly cancelled follow-up talks set for Tuesday, blaming public comments made by union leaders.

The announcement of the cancelled meeting came late Monday, just hours after a tense sit-down at the Office of the Prime Minister, held on National Heroes Day, where both BUT President Belinda Wilson and BPSU President Kimsley Ferguson accused the government of dragging its feet on salary increases and retroactive pay owed to thousands of public officers.

Wilson, never one to mince words, said the Prime Minister’s “technical officers” — the very people responsible for executing his instructions — were failing to carry out his directives regarding payment timelines.

“The Prime Minister’s issue,” Wilson said, “is that he has persons working for him who are not following his instructions. If those officers would follow through on what he told them to do, we wouldn’t be here today.”

Wilson added that the BUT and other unions are demanding retroactive pay dating back to September 2024, and that all increases be applied and paid by the October payday, not December as previously stated by the Prime Minister.

“Senior civil servants already received their retroactive pay — thousands of dollars — backdated to September of last year,” Wilson charged. “We’re saying the small man deserves the same. This isn’t a gift. It’s money already earned.”

Her comments came after the government publicly insisted that the salary adjustments would be implemented by December 2025, just ahead of Christmas — a timeline unions flatly reject as too slow.

Ferguson: ‘No More Excuses’

Following Wilson, BPSU President Kimsley Ferguson delivered a fiery statement of his own, telling reporters the unions would no longer tolerate delays or mixed messages from the Davis administration.

“The Prime Minister was receptive — but we’re not accepting excuses,” Ferguson said. “If the Prime Minister’s having a memory lapse, we have the Hansard from Parliament to remind him exactly what he promised public officers.”

Ferguson went further, warning that if Tuesday’s meeting failed to produce results, unions would “visit the House of Assembly” and intensify their campaign for immediate payment.

“Public servants, ready yourselves,” he declared. “We are prepared to stand together — all across The Bahamas — until our needs are met.”

Now, with the Prime Minister cancelling tomorrow’s talks altogether, that threat appears closer to becoming reality.

Government Bungles Response

Observers say the administration’s handling of the matter has been confused and contradictory, with conflicting statements on payment timelines and poor communication fueling frustration among teachers, nurses, and general public officers.

The government has maintained that the funds are allocated and will be disbursed before year’s end, but unionists insist they’ve heard it all before — and this time they want results, not promises.

The Prime Minister’s decision to cancel the meeting, rather than clarify or de-escalate tensions, has drawn sharp criticism across social media and among rank-and-file civil servants who see the move as punitive and dismissive.

Slowdown and the Threat of Another Mass Protest

Across several ministries, departments, and schools, reports are already surfacing of a go-slow in the public service, as workers express solidarity with the unions’ demands.

Many believe another mass demonstration is imminent, similar to the one staged last week Tuesday when thousands of workers gathered outside the House of Assembly on Bay Street as Parliament reopened after summer recess.

That protest brought parts of downtown Nassau to a standstill as union members sang, marched, and even sat in the street — a powerful show of defiance that now threatens to repeat itself unless the government moves quickly to resolve the impasse.

A Political Flashpoint

What began as a straightforward salary dispute has now evolved into a test of credibility and competence for the Davis administration. With a restless public sector, rising inflation, and unions unified across professions, the government risks not only another protest — but a full-blown industrial crisis heading into the year’s end.

For now, the unions are standing firm: they want retroactive pay from September 2024 and full salary adjustments by this October. Anything less, they warn, could push the country’s workforce from a slowdown into open confrontation.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.

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Nassau Cruise Port Marks Sixth Anniversary with Exciting New Additions for Visitors and The community

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[Nassau, Bahamas, October 8, 2025] Nassau Cruise Port (NCP) proudly celebrates its sixth corporate anniversary by unveiling a series of transformative additions that further enhance the guest and community experience. The anniversary comes at a pivotal moment in the growth of the port, with the opening of a new swimming pool, an expanded marina, and a state-of-the-art ferry terminal that will support transfers to the Royal Beach Club, which is currently under construction on Paradise Island.

Since its $300 million redevelopment, Nassau Cruise Port – the largest transit cruise port in the world – has welcomed millions of visitors and become one of the most vibrant cruise destinations in the world. This anniversary not only reflects its commitment to delivering world-class facilities, but also its dedication to creating meaningful connections between visitors and the Bahamian community.

“This milestone represents much more than the passage of time,” said Mike Maura, Jr., CEO and Director of Nassau Cruise Port. “It reflects our promise to continually elevate the guest experience, contribute to the local economy, and provide opportunities for Bahamians. During our first year (2019) of operating the Nassau Cruise Port, Nassau welcomed approximately. 3.85 million cruise guests, and 2025 will see well over 6 million cruise visitors visit Nassau. Our focus on driving cruise tourism and the $350 million investment in our downtown waterfront is a testament to our vision of making Nassau a premier cruise and leisure destination.”

The new pool offers a refreshing retreat for visitors enjoying Nassau’s waterfront, while the expanded marina will accommodate additional yachts, boosting tourism and local commerce. The ferry terminal expansion enhances passenger flow and supports convenient, seamless transfers to the Royal Beach Club, strengthening Nassau’s position as a hub for Caribbean cruising and leisure.

As part of its anniversary celebrations, NCP will host a series of internal and external activities to celebrate its team and to highlight its ongoing investments in the Bahamian economy, including job creation, local vendor opportunities, and cultural showcases at the port.

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