By K Quincy Parker
The company behind the financing mechanism has announced plans to develop a $36.75 million ‘resort town project’ in The Bahamas, but no resort developer or development partner was named, nor was any location given beyond “a prime bonefishing spot” and – most damning – officials in the Office of The Prime Minister of The Bahamas were unfamiliar with such a project.
OPM, which has responsibility for such investments, was not aware of the project, and Sir Baltron Bethel – a special consultant to Prime Minister Perry Christie on investment and tourism-related matters – pointed out that there was almost no way the kind of money announced could fund the kind of development touted by the financers.
Capital Corp Merchant Banking announced on Thursday that the project would be financed through debenture and common stock.
A debenture is a type of debt instrument that is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. In other words, those who by the bonds do so believing that the bond issuer (Capital Corp Merchant Banking, in this case) is unlikely to default.
An easily recognizable exemplar of this type of unsecured debt – again, backed only by the integrity of the borrower – is would be any government-issued Treasury bond. Such bonds are generally considered risk free because governments can, at worst, print money or raise taxes to pay their debts.
Capital Corp told PRWEB that it “has worked on numerous such projects over the years across the world and is seasoned in providing tailored funding packages for touristic commercial real estate.”
The planned project – as announced – will include a luxury resort, commercial town center, water park, mega-yacht marina, luxury gated community, and golf course. The island where the resort is purported to go “has numerous hidden coves with extensive, beautiful beaches and small, colorful villages. It is also a prime bone-fishing spot. Such a development will be a boon to the local economy, and greater Bahamian economy as well.”
Here’s what the press release said:
“Though remote, the natural beauty of the island targeted for this development offers both excitement and relaxation. With breathtaking, untouched beaches and unusual rock formations, it is a nature lover’s dream, with deep caves, coves, colorful reefs, some of the best bonefishing flats and big game fishing spots in The Bahamas, making it ideal for fishers, divers, and snorkelers alike.”
To reiterate, Bahamian authorities were unable up to press time Thursday to confirm the existence of any such proposed development, and the figure announced was considered insufficient to support a development of the scope and complexity announced, particularly as the supposed project is said to be expected to use alternative energy sources.
Calls to Capital Corp were not returned up to press time Thursday night.