NASSAU, BAHAMAS — Colina Financial Advisors Ltd. (CFAL) has announced that it is facilitating a bond offering for Bahamas Grid Company Ltd. The company, formed to work alongside Bahamas Power and Light (BPL), aims to upgrade and maintain the transmission and distribution system on New Providence (the T&D System).
The bond offering commenced on Monday, July 15, 2024, and will remain open until July 26, 2024, with a settlement date set for July 31, 2024. These Senior Unsecured Bonds will pay a semi-annual interest rate of 8 percent, with the first interest payment scheduled for January 31, 2026. They will reach final maturity on July 31, 2044.
Bahamas Grid Company seeks to carry out initial fundamental improvements to the T&D System amounting to $130 million, of which B$30 million was already raised during the second quarter of 2024. The company intends to partner with BPL to repair and manage poles, wires, and substations on New Providence to improve the reliability, resiliency, affordability, and sustainability of power for all Bahamian consumers.
According to the private placement memorandum, Bahamas Grid was formed in 2023 to work alongside BPL to undertake fundamental improvements to the electric transmission and distribution system on New Providence and to operate and maintain the T&D system thereafter.
The bond facility will have a 20-year final maturity (July 31, 2044). The minimum investment allowed in the bond is $50,000. The bond will pay investors a semi-annual interest rate of 8 percent. Bondholders will not have an equity interest in Bahamas Grid nor any voting rights. Interest payments will accrue and begin on January 31, 2026, and will be paid at the end of every July and January until maturity.
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