The Commonwealth of The Bahamas (The Bahamas) has successfully priced a 13-year, US$1.1 billion international bond and announced the results of the associated cash tender offer, which expired on October 27, 2026. Together, the new issuance and liability management exercise advance the Government’s strategy to reduce near-term refinancing risk, extend debt maturities and refinance certain Government facilities and energy-sector liabilities.
The transaction builds on The Bahamas’ return to international capital markets in June 2025 and continued improvements in its credit profile and investor perceptions. This supportive backdrop includes 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 new bond was priced on October 21, 2026 at a re-offer yield and coupon of 7.70%, following approximately 40 basis points of tightening from initial price thoughts. Strong investor demand generated a peak orderbook approximately 3.3 times the issue size, supported by 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.
The transaction achieved a yield reduction of more than 50 basis points compared with the June 2025 issuance, despite a longer tenor and higher reference rates, equivalent to a spread contraction of approximately 150 basis points for a comparable maturity. The tender offer expired on October 27, 2026, with approximately US$282 million tendered across five Eurobond series, of which US$171 million was accepted for purchase (21.0% of outstanding principal), with settlement scheduled for October 29. Together with the planned make-whole redemptions of the remaining 2028 and June 2029 Eurobonds, representing an additional approximately US$194 million in principal, the operation covers approximately
US$365 million in Eurobond refinancing.
The new issuance and associated liability management exercise support three key debt management objectives:
The tender offer and expected make-whole redemptions will fully retire the 2028 and June 2029 Eurobonds, the sovereign’s two shortest-dated international bonds, with a weighted-average residual life of approximately 1.9 years. Together, they will reduce scheduled principal repayments by approximately US$331 million through the end of 2029, extending the maturity profile and reducing near-term refinancing risk.
The operation will also refinance approximately US$450 million of principal repayments due over the same period, covering certain Government facilities and energy-sector liabilities, with the latter supporting the sector’s ongoing operations and investment capacity.
2
The transaction consolidates smaller Eurobond series into a larger benchmark, enhancing secondary-market liquidity and supporting the continued repricing of The Bahamas’ international yield curve.
BNP Paribas, J.P. Morgan, Scotiabank and Standard Chartered Bank served as Global Coordinators and Joint Bookrunners. Rothschild & Co and Hogan Lovells Cadwalader served, respectively, as financial advisor and international legal counsel to the Ministry of Finance.
