Bahamians will have an opportunity over the ensuing eight days to invest in a $24 million bond issue that will pay up to 3/4 percent above the prime interest rate over the next 30 years.
The bonds bear interest rates of 1/2, 5/8 and 3/4 percent respectively over the prime rate.
Parliament approved a resolution last month which guaranteed the Authority’s $24 million bond issue.
Moving that resolution, Prime Minister and Minister of Finance Perry Christie indicated that proceeds from the issue would be used not only to finance the acquisition of the 208-acre Clifton property, but also to develop that tract into a heritage and cultural park, and educational and recreational facility to be known as the Clifton Heritage Park.
The Bahamas government under the former Progressive Liberal Party administration acquired the historic property, which is situated on the western tip of New Providence, from Nancy Oakes von Hoyningn Huene more than 10 years prior to payment and conclusion of the transaction last December.
As the $19.4 million payment was made from the Consolidated Fund, the government was obligated to repay that amount.
The approximately $4.6 million balance of the bond, Mr. Christie said, would be used to establish and finance the administration of the Clifton Heritage Authority.
The Central Bank of The Bahamas will serve as registrar and transfer agent for the bond issue and will accept applications until May 17. The Bank has indicated that it will begin bond allocations on May 18.
The Central Bank further indicated that subscriptions from individuals of up to $10,000 will receive preferential treatment and will be fully served before allocations are made to corporate subscribers.
Individual subscription amounts over $10,000 and corporate subscriptions will be allocated on a pro-rata basis, the Bank said in a statement.
Participation in the bond issue is restricted to Bahamian citizens, corporations that are wholly Bahamian-owned, banks licensed to carry out domestic banking business in The Bahamas, registered insurance companies that are licensed to operate in The Bahamas, the National Insurance Board and pension funds established exclusively for Bahamian citizens and permanent residents with the right to work without restriction.
In a press release, the Bank announced that application forms may be obtained from The Central Bank’s offices in Nassau and Freeport, The Public Treasury, Marlborough Street, Nassau or any of the following:
Bank of The Bahamas International; Scotiabank (Bahamas) Limited; FirstCaribbean International Bank Limited; FirstCaribbean Finance Corporation (Bahamas) Limited; Fidelity Bank Bahamas (formerly British American Bank (1993) Limited; The Royal Bank of Canada; Citibank, N.A.; Commonwealth Bank Limited; Finance Corporation of Bahamas Limited; Fidelity Merchant Bank & Trust; S. G. Hambros Bank & Trust (Bahamas) Limited; Colina Financial Advisors.
From: The Bahama Journal
