NASSAU, BAHAMAS — Deputy Prime Minister and Minister of Public Works Desmond Bannister said yesterday that although the pandemic has delayed Bahamas Power and Light’s $600 million rate reduction bond, it will be placed “very soon”.
Bannister told Eyewitness News: “We’re going to bring some things to Parliament very soon so that we can move ahead with that. It’s going to move ahead. The pandemic has kept us from putting that in place but we are going to get going very soon.”
BPL’s bond offering is a part of the utility provider’s efforts to obtain the financing needed to refinance the company’s legacy debt and also fund major upgrades to its transmission and distribution network.
At last report, the bond was expected to close by the middle of this month.
“We’re on target with that,” said Bannister.
Bannister noted that BPL’s revenue, similar to the Water and Sewerage Company (WSC), has been severely impacted by the pandemic.
“The pandemic has affected so many people, not only here but across the world. I think the corporations understand that and we are just waiting to see how we can recover once we start rolling out the vaccine,” he said.
The Bahamas Rate Reduction Bond Ltd is the special purpose vehicle that will be responsible for issuing the bonds and making investor interest payments.
The legislation makes clear that BPL’s customer base will be relied upon to service the bond issue. BPL had announced that the average household will see a $27 per month increase in their electricity bill, which represents 15 percent of the average bill of $180 per month.
