The Tribune

A $100m loan that will enable a Bahamian contractor to complete 200 miles of roadworks on Exuma and Eleuthera has been structured as an “accounts receivables factoring” arrangement, it was revealed yesterday.

The Bahamas Striping Group of Companies (BSGC), in a statement asserting that the Exuma roadworks are 97 percent complete, disclosed for the first time how the $100m financing it received last year from the Africa Export-Import Bank (Afreximbank) has been put together.

It explained that the receivable factoring facility will ensure that the road projects proceed without delay by smoothing the timing of payments, thus helping to maintain stable cash flow and uninterrupted service delivery without increasing costs or risks to the Bahamian tax-paying public from unexpected hold-ups

And Bahamas Striping added that the Afreximbank loan enables it to reliably fund the work of key Bahamian sub-contractors, including Quick Fix and Nu View, which have been awarded multi-million dollar portions of the roadworks contracts.

Atario Mitchell, Bahamas Striping’s president, said the $100m receivables factoring facility will enable Bahamian companies to meet their financial obligations, such as paying employees, purchasing materials and expanding operations.

“This facility gives Bahamas Striping the ability to move faster, plan better and execute with even greater reliability across multiple islands,” said Mr Mitchell.

“Strong working capital is essential in infrastructural development, and this partnership gives us the financial agility to maintain momentum. Most importantly, it strengthens the value chain around us, making successful project delivery possible on time and on budget.”

Accounts receivables factoring occurs when a company sells unpaid invoices, representing monies owed to it, to a third-party in exchange for cash. A relatively common commercial financing technique, it improves a company’s cash flow and means they are not hanging around to receive due payments.

However, in this particular case, the major accounts receivables that Bahamas Striping will be waiting on are payments from the Government on their roadworks contracts. Financial specialists spoken to by Tribune Business said the release, and the financing structure as described, strongly suggest that the receivables exchanged by Bahamas Striping in return for the loan are those government contract payments.

They added that, in effect, the Government will now be paying the Africa Export-Import Bank instead of Bahamas Striping for the roadworks contract. And they argued that this represents an ‘off-the-books’ loan, designed to keep liabilities off the Government’s balance sheet and from adding to the $11.5bn-plus national debt.

One source noted that the financing structure’s disclosure was especially interesting given the just-released International Monetary Fund (IMF) Article IV consultation on The Bahamas, which warned there was a risk of “under-estimating” the liabilities associated with public-private partnership (PPP) deals such as Bahamas Striping’s.

“It’s off-balance sheet financing,” one source said. “Did the Government provide a letter of comfort or guarantee in kind to the Africa Export-Bank. I can’t imagine the bank would get into this arrangement without a commitment from the Government. That would then become a contingent liability of the Government and requires express parliamentary approval just as they did around the energy financing last week.

“That’s a clear way to keep government debt off the books, and we don’t know if Bahamas Striping is getting any fees as the middle man. This PPP exposure is crazy and will eventually come back on the Government’s books. The credit rating analysts will likely now ask the Government questions given that the IMF has flagged it.”

However, the $100m loan is said to mark Afreximbank’s first such transaction with a private company in The Bahamas and the wider Caribbean region.

“This funding mechanism is a defining moment for Bahamas Striping Group of Companies and for the wider Caribbean,” said Dominic Sturrup, Bahamas Striping’s executive chairman. “The successful closure of this deal represents far more than financing; it signifies belief in Caribbean excellence, trust in our ability to deliver, and confidence in the impact that regional companies can create when they are properly capitalised.

“We are grateful to Afreximbank for standing with us through every stage of the process, and we are proud that this transaction strengthens our ability to execute major projects, support our sub-contractors and vendors, and scale opportunities.”

The scope of work includes asphalt paving, road striping, safety modifications and maintenance. Once completed, the works are expected to significantly improve road safety and enhance access between communities on the Family Islands.

Founded 16 years ago, Bahamas Striping is currently carrying out phase one road improvement works on around 183 miles of highway and settlement roads in Eleuthera, stretching from Cape Eleuthera in the south to Hatchet Bay in Central Eleuthera. The project also includes installing water mains in areas that previously did not have piped water.

Okechukwu Ihejirika, acting chief operating officer of Afreximbank, said the deal reflects the bank’s “steadfast commitment to supporting Global Africa partners in developing trade-enabling infrastructure”.

The facility, he added, represents an innovative approach to structured finance in cross-regional partnerships. “We are supporting sustainable development and creating enhanced economic opportunities across the region,” said Mr Ihejirika.

The loan facility was signed at the Africa-Caribbean Trade and Investment Forum 2025.