The Bahamas has opened an offer to buy back five series of U.S. dollar notes, contingent on a new debt sale, leaving the scale of the government's planned purchases undecided.
The government's Oct. 19 announcement lists five balances totaling $812.962 million in outstanding principal. They include $158.181 million of 6.000% notes due 2028; $173.135 million of 9.000% notes and $226.116 million of 6.950% notes due 2029; $175.639 million of 6.625% notes due 2033; and $79.891 million of 7.125% notes due 2038. The total is eligible debt, not a buyback target.
Prices range from $970 per $1,000 of principal for the 7.125% notes due 2038 to $1,081.55 for the 9.000% notes due 2029. The offer also sets prices of $1,007.69 for the 6.000% notes due 2028, $1,022.50 for the 6.950% notes due 2029 and $986.25 for the 6.625% notes due 2033. Holders whose notes are accepted would receive accrued and unpaid interest in addition to the listed price.
The government will set a purchase cap for each series. If the purchase price of valid tenders exceeds a series' cap, it will apply a proration factor; it may also accept no tenders. The offer has no minimum participation condition. Brokers handling certain accepted tenders of up to $250,000 per holder in the 6.950% 2029, 2033 and 2038 series may receive a processing fee equal to 0.25% of principal.
The Ministry of Finance's July borrowing plan did not explicitly schedule an international bond issue for fiscal 2026-27, while leaving room for buybacks when market conditions warranted. The ministry identified extending debt maturities and limiting refinancing risk as debt-management goals.
Tenders are due by 5 p.m. ET on Oct. 27. The government expects to report tendered amounts around 9 a.m. ET on Oct. 28 and announce acceptance decisions and purchase limits around 5 p.m. ET that day. Settlement is expected Oct. 29; the dates may change.
