NASSAU, Bahamas – Bahamas Government Registered Stocks (BGRS) have been approved for listing on the Bahamas International Securities Exchange (BISX or the Exchange).
Announcing this in press release on Friday, August 2, 2019, the Ministry of Finance said this major step forward paves the way for Bahamians to be able to buy and sell Government bonds on the local securities exchange, and track the value of their investments using the online marketplace.
“We are getting ready to list over 200 government bonds, which (at the time of Press) represents the entire portfolio of outstanding securities going back to 1999,” said K. Peter Turnquest, Deputy Prime Minister and Minister of Finance. “This will stimulate the entire Bahamian capital market, improve our financial market infrastructure, and increase accessibility to Government-backed investments for all Bahamians.”
Minister Turnquest added, “This is another area where the Government is making good on its promise to modernize and keep pace with the digital transformation happening globally, and introduce more efficiency to the Government’s borrowing infrastructure. Centralized market trading of Government bonds is an important component for the growth of the entire Bahamian capital market. It’s been a long time in the making and I am proud that this Government’s leadership has helped to finally bring this project to fruition.”
The transfer of the secondary market to the Exchange-is a major objective of the Financial Markets Modernization Project, a collaborative effort between the Ministry of Finance, the Central Bank of The Bahamas and BISX. The project seeks to create a centralized marketplace for all Bahamians dollar securities. Several changes are being implemented, including the creation of the centralized marketplace for all Bahamas Government debt dollar securities.
The project’s phases include:
1) Listing BGRS on BISX,
2) Launching a Bahamas Government Registered Stock Depository (BGSD), which will facilitate competitive bidding and other industry-specific market improvements;
3) Transition to a paperless registry, which involves the introduction of digital certificates for Government bonds; and,
4) Electronic trading.
“With this modernization of the country’s financial market infrastructure, Bahamians will now have easy access to investment information and market activity on all Government bonds, and there will be transparency around the pricing of Government securities. Lastly, Bahamians will be able to see and have an opportunity to trade outstanding securities on an open market,” said Minister Turnquest.
