Bahamas News

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

Published

6 years ago

November 18, 2017

#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)

Bahamas News

Royal Caribbean Club in The Bahamas started after delays

Published

6 hours ago

April 25, 2024

Shanieka

Rashaed Esson

Staff Writer

#TheBahamas#RoyalCaribbean, April 23, 2024- After being delayed following its announcement in 2020, Royal Caribbean’s new 17 acre Royal Beach Club on Paradise Island in Nassau, Bahamas, is now in the works and is scheduled to be ready for 2025, according to reports. A groundbreaking ceremony was held on Monday April 22, signifying the start of construction in the next few months. This project is huge for The Bahamas as it’s a first of kind for the nation, with a unique public private partnership allowing Bahamians to hold up to 49 percent in equity.

Bahamas News

Nassau Cruise Port Donates Nearly $2 Million Towards Food Security

Published

3 days ago

April 22, 2024

Shanieka

Nassau, Bahamas: The Nassau Cruise Port has donated $1.95 million towards
projects that will assist the Ministry of Agriculture and Marine Resources in its aim
to increase food security for The Bahamas.

The donation officially occurred at the Ministry’s offices recently, where Minister
of Agriculture and Marine Resources Hon. Jomo Campbell, Minister of Labour
Hon. Pia Glover-Rolle, Permanent Secretary Neil Campbell and Nassau Cruise
Port CEO Mike Maura listened to a number of presentations including one for a
poultry programme for schools, a chicken broiler production programme, the
redevelopment of the Blue Hill Road Farmers Market and an Authentic
Bahamian Cultural Concept Store,

Mr. Maura said he was impressed by the presentations.

“I had the privilege to listen the presentations and review presentations that
touched on food security and the need for us to be self-sufficient, which as a
Bahamian I support completely. At the Nassau Cruise Port, we get excited
about the prospects of offering more authentic food to the millions of visitors
that we have each year,” he said.

“And then, in addition to that, we had presentations around the further
development of our artisans, which is so important to us as well. The guests
visiting our shores are looking for something that really touches The Bahamas
and can’t be found somewhere else. The Nassau Cruise Port has made a pledge to BAIC and its affiliates. We will be supporting the projects that were presented and we can’t wait to get started.”

Minister Glover-Rolle, who is also the Member of Parliament for Golden Gates,
hailed Nassau Cruise Port as a “great community partner.”

“Thank you for the opportunity to not only present but agreeing to participate.
Our Minister of Agriculture has a goal of reducing food imports by 25 percent by
the year 2025 and our project in the Golden Gates Community speaks to that,”
she said.

“We have a number of backyard farmers, farmers and fishers in our community
in Golden Gates. Being able to use the Blue Hill Road Farmers Market, which is
going to be dubbed the ‘Fish Fry of the South,’ as a hub for food security but
also a hub where artisans and handicraft persons can come and sell their wares
is wonderful. So, we are happy that you have agreed to partner with us and we
look forward to a partnership and we hope to welcome some of your visitors
when this amazing renovation is done.”

Minister Campbell also lauded the Nassau Cruise Port for its efforts.

“I would like to say thank you to the presenters for the presentations that are
several steps in the right direction for our country, to Mr. Maura and his board at
the Nassau Cruise Port and I would like to say thanks to God for this partnership
and bringing us all together as we move forward, upward, together in building a
better, brighter, future for The Bahamas,” he said.

Bahamas News

Career Symposium 2024 Connects University Students with Successful Professionals

Published

1 week ago

April 16, 2024

Deandrea Hamilton

Nassau, THE BAHAMAS — Some of the most successful and accomplished professionals and business leaders in the country recently shared their experiences and nuggets of wisdom with students at University of The Bahamas (UB) about thriving in a wide range of careers.

The University Centre for Counselling and Career Services and the Career and Job Placement Advisory Unit collaborated to host the 2024 Career Symposium which brought students face to face with leaders in the careers to which they aspire.

Vice President of Academic Affairs, Dr. Maria Oriakhi, said the symposium was key to developing potential as university students strive to leave their mark on the world.

Ms. Rickell Curry

“In the spirit of collaboration and growth, let us engage in meaningful dialogue, cultivate relationships, and harness the power of collective wisdom to shape our futures,” said Dr. Oriakhi. “Together, let us embark on this journey of exploration and discovery, united in our commitment to realizing our fullest potential and making meaningful contributions to our communities and beyond.”

Promoting careers in psychology, Ms. Curry noted that psychologists are equipped with the ability to help others, troubleshoot areas of weakness within themselves, and become better people and professionals in the process.

“The floor is yours to be able to explore. There’s no job where you don’t have to deal with people, so learning, even if you get a bachelor’s in psychology, is a great grounding,” she said.

Dr. Darville, one of few interventional radiologists in The Bahamas, offered another nugget of advice on choosing an area of study.

Dr. Elizabeth Darville

“It is important to know enough about yourself in order to make the decisions you want to make,” said Dr. Darville. “You have to work on yourself first and know what you want to do. Radiology gives you a chance to have fun. It gives you a chance to mold your career closer to your personal life than other medical specialties might.”

Another growing field is project management which Mr. Hepburn called a life skill. He also urged a commitment to lifelong learning.

“Individuals that continue to learn become unstoppable, period,” said Mr. Hepburn. “It is so true. When you learn, you become unstoppable because nothing can stop you in your process of development.

Mr. Wellington Hepburn

“The more you know, the more valuable you are. We need individuals who are cross functional—that can operate in different capacities. So please understand that your learning should never stop.”

With small and medium-sized businesses helping to drive the economy at an incredible rate, Ms. Rolle affirmed the importance of entrepreneurship in any economy.

“When we talk about entrepreneurship, we usually look at it from a myopic standpoint,” she said. Ms. Rolle. “What do I mean by that? Small, but usually about self: ‘how do I make more money?’ And in some cases, some look at entrepreneurship as a way of survival. ‘I need to make a couple extra dollars, I have this bill to pay’. Those types of things.

Ms. Samantha Rolle

“But entrepreneurship really, in its truest form, is about innovation, whether it’s a new concept or any existing concept that you innovate new ways, or help expand the economy.”

The career symposium was held at the Harry C. Moore Library and Information Centre and is held every academic year.

PHOTO CAPTIONS

Career Symposium 1: UB Vice President of Academic Affairs, Dr. Maria Oriakhi, delivers the opening address at the 2024 Career Symposium.
Career Symposium 2: Students and guest speakers enjoy a lighthearted moment during the 2024 Career Symposium.
Career Symposium 3: Ms. Rickell Curry speaks to students during the 2024 Career Symposium.
Career Symposium 4: Dr. Elizabeth Darville delivers remarks during the 2024 Career Symposium.
Career Symposium 5: Mr. Wellington Hepburn educates students on the importance of project management during the 2024 Career Symposium.
Career Symposium 6: Ms. Samantha Rolle talks about the role and importance of entrepreneurs and entrepreneurship in any economy.