Bahamas $750m Bond Missed Global Standard
The government last night said it “recognised the merits” of reform after the IMF revealed The Bahamas’ last US$750m sovereign bond issue did not meet evolving global standards.
#KP Turnquest, deputy prime minister, told Tribune Business in a messaged response that the Minnis administration planned to take up the matter with its “legal advisers” to ensure the concerns raised by the International Monetary Fund (IMF) were “considered” in the government’s future international bond issues.
#He spoke out after the fund, in a paper published last Thursday, revealed that The Bahamas was one of just five nations not to include “enhanced collective action clauses” or CACs in sovereign bond issues since late September 2017. Such clauses were omitted from the $750m US$ bond issue placed by The Bahamas in late 2017.
#“Only a few issuers are not following the market trend,” the IMF revealed. “From end-September 2017 to end-October 2018, these issuers were The Bahamas and Lebanon under New York law, and Azerbaijan, Macedonia and Poland under English law.”