Banker and Advisor to Government

How do I buy Bahamas Government Registered Stock?

The Central Bank of The Bahamas functions as the Official Registrar for securities of the Government. Bahamas Government Registered Stock (BGRS) may be purchased by one of two means:

  1. Initial Public Offering: Prospectus for new stock offerings are published in daily newspapers, and may also be obtained by the general public from either the Central Bank, the Public Treasury, or any commercial bank. Interested investors are required to submit applications to the Central Bank no later than the stipulated deadline. Notably, purchase funds must also be submitted at the time of application or Real-Time Gross Settlement (RTGS) instructions, for amounts in excess of $1.0 million.

  2. Over-the-counter purchase: Interested investors may contact the Central Bank's Banking Department, and should provide the following information: the amount of the desired investment and the type of maturity, or more specifically the period of time over which they wish to hold the security. The Bank will then select an issue in its own portfolio most suitable to the investor's needs and within two business days, is able to make an offer.

Previously, individual purchasers of BGRS had to be Bahamian citizens aged 18 years or older (persons are permitted to purchase stock on behalf of minor children, as long as they are held in trust for those children until they reach majority age). Additionally, institutional investors were either companies that were Bahamian owned, or in the case of banks, licensed to carry out domestic banking. Where investments were made by pension funds, only funds established exclusively for the benefit of Bahamians were permitted to purchase BGRS.

Since January 2006, the Central Bank eased its restrictions on the ownership of Government debt securities, to allow temporary and permanent residents (with restricted right to work) to purchase these securities, provided they do not exceed a limit of $100,000 per person/entity, and are funded from Bahamian dollar (B$) earnings.

  1. What is the difference between a Treasury bill and a Government Bond?
  2. How are Treasury bill rates determined?
  3. How does the Treasury bill tender operate?
  4. How do I buy Bahamas Government Registered Stock?
  5. What if I needed to sell my Bahamas Government Registered Stock?
  6. What should I do if I've lost my Bahamas Government Registered Stock certificate?
  7. Can I use my Bahamas Government Registered Stock as collateral if I needed to get a loan?
  8. What is the National Debt?
  9. How has the National Debt changed over the past few years?

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