On February 28, 2022 the Government of the Commonwealth of The Bahamas (“the Government”) and Goldman Sachs International (“GSI”) entered into a repurchase agreement (“repo”). Under the terms of the agreement, the Government sold and transferred to GSI U.S.$235,916,000 nominal amount of United States Treasuries (“Treasuries”) in consideration for a purchase price of U.S.$206,458,850.71 from GSI. It is intended that the purchase price received by the Government from GSI will be used by the Government for general budgetary purposes during the 2021/22 fiscal year.
The designated Treasuries are part of the Sinking Funds managed by the Central Bank of The Bahamas on behalf of the Government. During the term of the repo, subject to the Government complying with its obligations under the repo, GSI is required to transfer to the Government amounts equal to any interest payments received on the Treasuries. On the scheduled repurchase date for the repo (24 months from the purchase date), GSI is required to sell and transfer the Treasuries (or equivalent assets) back to the Government against payment by the Government of the repurchase price of U.S.$206,458,850.71 (subject to such amount being reduced by any amortization payments made by the Government) and the compliance with all other obligations under the repo.
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