BPL debt to be restructured by end of year
Bahamas Power and Light (BPL) Chairman Dr. Donovan Moxey said yesterday the power supplier hopes to restructure $311 million in debt by the end of the year.
“Another thing the public needs to be aware of is we have a total of about $311 million in debt that we have to service,” Moxey said.
“So, when we look at streamlining our operations, when we look at the use of revenues that come in, we have a debt service burden. Of that $311 million that’s out there, $241 million of that is legacy debt from BEC (Bahamas Electricity Corporation) that we, as BPL, have to pay off.”
The chairman said BPL is undergoing a rate reduction bond process and has already identified an international financial firm as its “major book runner”.
Moxey said the firm will be announced in the “next week or two”.
He said the corporation hopes to be “well on our way to a little more financial stability” by the end of the year.
“Our intention is that by the end of this year, we would have restructured our debt in terms of having a new bond issued, gotten our payments to the point where they are much more manageable [and] reduced the amount of fees we pay for fuel on a monthly basis because we would’ve transitioned out of having the majority of rental generation, to now having assets that we own that are running on the lower cost fuel,” Moxey said.
BPL announced in March that Finnish technology group Wartsila will install a new 132-megawatt engine power plant at Clifton at a cost of $95 million to increase the generation capacity on New Providence.
In 2014, it was announced that the government planned to remove $450 million in legacy debt from BEC’s books in a bid to allow the corporation to rationalize its expenses and improve its credit rating.
In August 2018, Minister of Public Works Desmond Bannister advised the BPL board that renewable energy, and the rate reduction bond (RRB) to refinance BPL’s legacy debt and liabilities remain top priorities.
Education: Goldsmith, University of London, MA in Race, Media and Social Justice
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