The Bahamas Mortgage Corporation Bonds
Established by an Act of Parliament, the Bahamas Mortgage Corporation commenced operations in 1983 and during its tenure has averaged approximately 272 loan approvals per annum. Its asset portfolio includes loans to individuals for the construction of new homes, the purchase of new or existing dwellings and financing for housing rehabilitation and structural enlargement. The Corporation, which currently falls under the responsibility of the Minister of Housing and National Insurance, places particular emphasis on Government initiated projects, which comprises the largest share of its total outstanding loans.
By its Act, the Corporation has the authority to issue bonds, and has received from Parliament, Government's guarantee for the issuance of up to $120 million in bonds. Bahamas Mortgage Corporation's Bonds are issued in denominations of $100,000 and usually attract interest rates that are tied to the Bahamian prime lending rate. Bond-holders include The National Insurance Board, the clearing banks and insurance companies. As of June 2007, total bonds outstanding were $99.8 million.
The Central Bank of The Bahamas is the official Registrar of Securities for the Bahamas Mortgage Corporation.