Bahamas secures US$1.07B bond to cut debt, boost economy

The Bahamas has successfully returned to international capital markets, raising $1.067 billion through an 11-year U.S. dollar-denominated bond issuance aimed at repurchasing $767 million in outstanding Eurobonds and supporting national development priorities.

The new bond, which carries a coupon and re-offer yield of 8.25%, was met with strong investor demand during a three-day global roadshow that included over 60 institutional accounts across North America, Europe, and the Middle East. The transaction closed with the order book 3.9 times oversubscribed, reflecting renewed investor confidence in The Bahamas’ economic trajectory, fiscal reforms, and credit fundamentals.

“This transaction marks an important step forward in The Bahamas’ external financing strategy,” officials noted, highlighting the operation’s contribution to extending the average maturity of the country’s Eurobond portfolio by 2.1 years and reducing principal payments by $451 million over the next three years.

The majority of proceeds will be used to execute the associated liability management operation, while a portion will go toward infrastructure and national development projects.

This is The Bahamas' first international bond issuance since 2022 and follows favorable credit outlook upgrades from Moody’s and Fitch in April 2025. The move is part of a broader financing strategy that includes innovative debt structures such as the $300 million Debt Conversion Project for Marine Conservation (closed in November 2024) and a $500 million international loan supported by a $200 million Inter-American Development Bank guarantee in January 2024.

Rothschild & Co acted as the sole financial advisor, and Hogan Lovells as international legal counsel to the Ministry of Finance. BNP Paribas, Citi, and Deutsche Bank served as Global Coordinators and Joint Bookrunners, with CIBC FirstCaribbean also participating as a Joint Bookrunner