Nassau Cruise Port launches bond offering
Nassau Cruise Port Ltd. (NCP) has commenced a bond issue as a private placement offering. The Bond Facility will have a 20-year final maturity (June 30, 2040), the company said in its release. Colina Financial Advisors Ltd. (CFAL) is the lead placement agent.
NCP intends to use the proceeds of the offering to fund port redevelopment costs including an extension in the berthing capacity of the port; the creation of a new inner harbour to facilitate the transfer of cruise passengers by sea; the creation of recreational, entertainment, retail, and food & beverage spaces for a seamless, pleasant experience integrated with downtown Nassau; and related design, engineering and inspection costs. Part of the proceeds will also be used to provide community contributions that will assist local entrepreneurs and merchants with enhancing their businesses and to support Bahamian ownership in the project.
This bond offering is a separate activity from the initial public offering (IPO) that will be placed in mid-2021 to establish equity investment in the Bahamas Investment Fund (BIF). Through the IPO, all Bahamians will have an opportunity to invest in BIF, facilitating broad-based Bahamian ownership in the project.
This transformative project is anticipated to have a B$16 billion cumulative impact on the Bahamian economy from 2020 to 2049 due to anticipated increases in cruise passenger arrivals, onshore rates, and cruise passenger spending.
About Nassau Cruise Port
Nassau Cruise Port Ltd. (NCP) will transform Nassau Cruise Port, the cruise gateway of New Providence, into one of the great waterfronts of the world. The company manages the cruise port and is currently redeveloping the port facility to enhance the passenger experience and increase business opportunities for Bahamians. The project will also see the construction of a new terminal building; the creation of an event and entertainment area; investments in retail facilities; and the design and construction of new food and beverage facilities. It will integrate the port into Bay Street with the expectation that it will serve as a catalyst for the wider development of the downtown core. The construction phase is expected to start in Q4 2019 and is anticipated to be completed by April 2022. NCP began operations in October 2019 as part of a consortium comprising Global Ports Holding Plc, the Bahamas Investment Fund ("BIF") and the Yes Foundation.
