NASSAU, BAHAMAS — The Central Bank of The Bahamas has announced a temporary waiver of the Investment Currency Market (ICM) five percent premium for resident investors applying to invest in The Bahamas Government US dollar bonds.
In a statement, the regulator said that it has the ICM premium of five percent associated with purchases of foreign currency for these specific portfolio investments is being waived for a limited period.
“The public is advised that in order to participate in and to conclude such purchases, they are required to engage a local broker-dealer or authorized agent. The securities purchased must be kept in accounts held in the custody of the same authorized institutions,” the Central Bank said.
It noted that it has seen increasing investor interest in purchasing the Bahamas Government instruments.
“After consultation with the Minister of Finance, it has been decided that applications to facilitate such transactions will be approved at the official market rate, by the Bank. The waiver of the ICM premium on outflows would preclude any approved transactions from the partial ICM premium rebate on the capital, on the liquidation of the investment, and repatriation of proceeds to The Bahamas,” the regulator said.
The CBOB also announced that it has launched its Bahamas Registered Stock (BRS) Applications Portal, which will allow investors to easily subscribe to government bonds online.
“The new portal digitizes the application/subscription process for primary market bond issuances originated by the Central Bank on behalf of The Bahamas government,” the regulator said.
It added, “With a one-time enrolment, investors may apply or subscribe for BRS between opening and closing dates, receive electronic payment confirmations, and log on to view the results of their subscriptions on the settlement date. Existing BRS investors who purchase BRS through the Central Bank should have received an email message with the link to register on the new portal.”
