Birmingham Water Works Board (BWWB) of Birmingham, Ala., has consistently achieved the rating of the number-five water system in the United States...
Consolidated Water Co. Ltd., which develops and operates reverse osmosis seawater conversion plants and water distribution
systems in areas where natural supplies of drinking water are
scarce or nonexistent, announced that its Waterfields Co. Limited
subsidiary has completed the sale of B$10 million (Bahamian
dollars) in Series A bonds to Bahamian citizens and permanent resident investors.
The bonds, which mature on June 30, 2015 and accrue interest at an annual fixed rate of 7.5%, will finance a portion of the construction of the Blue Hills Plant, a new seawater desalination plant and the expansion of Consolidated Water’s existing seawater desalination plant, the Windsor Plant on the Island of New Providence. Consolidated Water has an option to redeem the bonds in whole or in part without penalty after June 30, 2008. The Government of the
Commonwealth of the Bahamas accepted the bid of Consolidated Water and Waterfields to build and operate the Blue Hills Plant.
In order to encourage investors to purchase Bahamian dollar denominated bonds, Consolidated Water, the majority owner of Waterfields, issued a guarantee of Waterfields' obligations to pay all principal and accrued interest to the bondholders.
"While the guarantee is a general unsecured obligation of Consolidated, the transaction affords us the opportunity to finance in the local currency, thereby matching our obligation to the currency of our future income stream and avoiding any future currency conversion expense that may have resulted if financing was denominated in US dollars," noted Joe Pivinski, chief financial officer of Consolidated Water. "Also, we have eliminated the risk of exchange loss in the unlikely event of a change in the Bahamian dollar's fixed parity with the U.S. dollar."