(CNS): The Cayman Islands Government has begun seeking a financial institution to provide a CI$236 million loan facility over two years. However, the CIG plans to draw down on CI$124 million — over half of it — before the end of December, officials have confirmed.
Finance Minister Rolston Anglin told Finance Committee that a decision had been made last month to issue a Request for Proposals for the loan, which was approved by parliament for the current 2026–2027 budget period in November last year. The money is to fund a number of public projects, including the costly and controversial high school on Cayman Brac.
“I did make the commitment that we weren’t going to go to the market until we saw that we needed to,” Anglin stated at the recent meeting. “And so, we’ve now done that.”
He told MPs that the money would be drawn down as appropriate in order to manage interest costs. The CIG is expected to pay around $100,000 in interest on this latest unsecured borrowing over 15 years. The first chunk will be drawn after an agreement is made, and the remaining $112 million within three months of executing the agreement or upon one month’s written notice of drawdown.
The money will not be used to fund government operations. It will be used for capital programmes, which as well as the school, include the expansion of educational facilities at Sir John A. Cumber and Joanna Clarke Primary Schools, more road works, land acquisition, affordable homes, and equity investments in public entities.
As of 31 August, the CIG’s debt balance was CI$471.8 million. This loan will increase the debt to just over $700 million, which has caused some public disquiet but is small compared to other countries around the world. Anglin previously told parliament that the CIG would continue to monitor its cash reserves and financing requirements, and would only approach the market when borrowing became necessary.
Officials said the timing of the RFP reflects that approach, allowing the government to align the financing with the implementation of its capital programme, while managing the interest costs associated with new debt.
The CI$134.3 million in supplementary appropriations approved by Finance Committee in June 2026 did not increase the borrowing authorised in the original budget. Of those supplementary appropriations, CI$114 million related to capital and equity investment and CI$20.3 million related to operating expenditure.
The government confirmed at the time that the additional appropriations would be accommodated without increasing the CI$236 million borrowing limit approved for the 2026–2027 budget period.
The RFP was issued through the Government’s Bonfire procurement portal on 29 September. The submission deadline is 27 October, with execution of the loan agreement currently anticipated in December.
See the RFP here.