Bahamas Launches Tender Offer for Five Series of Global Notes

• On October 19, 2026, the Government of The Commonwealth of The Bahamas (the Government) launched an offer to purchase for cash five series of its outstanding US dollar-denominated notes, with a combined outstanding principal amount of US$812.96Mn. The targeted series are the 6.000% notes due 2028, the 9.000% notes due 2029, the 6.950% notes due 2029, the 6.625% notes due 2033 and the 7.125% notes due 2038. The offer is not subject to any minimum participation level but is conditioned on the concurrent (or earlier) closing of a new global notes issue sufficient to fund the purchases.
• The Government will pay a fixed price per US$1,000 principal amount for each series, plus accrued and unpaid interest up to the settlement date. The 9.000% 2029 notes will be purchased at US$1,081.55, the 6.950% 2029 notes at US$1,022.50 and the 6.000% 2028 notes at US$1,007.69, all premiums to par, while the 6.625% 2033 and 7.125% 2038 notes will be purchased at discounts of US$986.25 and US$970.00, respectively.
• All five tender prices exceed current market prices, with the 9.000% 2029, 6.950% 2029 and 6.000% 2028 notes offered premiums of 2.73%, 1.45% and 0.61% to their market prices of US$1,052.84, US$1,007.90 and US$1,001.57, respectively. Although the 6.625% 2033 and 7.125% 2038 notes will be purchased below par, their tender prices remain 0.67% and 3.31% above their market prices of US$979.71 and US$938.94, respectively, with the 2038 notes carrying the largest premium in the offer.
• The Government will set a maximum purchase amount for each series at its sole discretion and may prorate tenders where the aggregate tendered amount exceeds that limit. Brokers will also receive a processing fee of 0.25% on accepted tenders of up to US$250,000 per holder for the 6.950% 2029, 2033 and 2038 notes.
• The offer expires at 5:00 p.m. (New York time) on October 27, 2026, which is also the withdrawal deadline, unless extended or terminated earlier. The Government expects to announce the results on October 28, 2026, with settlement expected on October 29, 2026. In allocating the new notes, the Government intends, though it is not obligated, to give some preference to investors who have tendered, or firmly indicated their intention to tender, their existing notes. BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and Standard Chartered Bank are acting as dealer managers.
• The transaction is a liability management exercise that would allow the Government to refinance part of its external debt through new issuance. The 2028 and 2029 notes account for US$557.43Mn, or 68.6%, of the targeted principal, suggesting the exercise is aimed primarily at easing near-term refinancing pressure and extending the debt maturity profile. Retiring the 9.000% 2029 notes, the highest-coupon series in the offer, could also lower interest costs, depending on the pricing of the new notes.

(Sources: Government of The Bahamas & NCBCM Research)