When a city needs new streets, better drains, or upgraded public buildings, it has two choices: raise taxes, or borrow. For decades, Belizean municipalities had only one realistic borrowing route — a bank overdraft. Municipal bonds changed that, and Legacy Fund Limited helped bring them to Belize.
What is a municipal bond?
A municipal bond is a loan made by investors to a city or town council. In return for their capital, investors receive regular interest payments and the return of their principal at maturity. Because repayment is backed by the municipality's revenue streams, bonds turn a city's future income into money it can invest today.
The elegance is in the match: long-lived assets — roads, drains, machinery — are paid for over the long life of the asset, rather than all at once.
Municipal bonds transform municipal revenue into liquid assets — money that works for citizens today, repaid responsibly tomorrow.
Belize's first municipal bond
In 2012, the Belize City Council took the courageous step of embracing this new financial approach. Legacy Fund Limited acted as principal financial advisor, structuring the Belize City Infrastructural Municipal Bond, which raised $20,000,000.00.
The proceeds were used to retire the Council's existing overdraft facility at ScotiaBank (now Belize Bank) Limited and to fund the construction and repair of streets and drains throughout Belize City — replacing short-term, expensive debt with long-term capital matched to public works.
Building on the model: Belmopan 2016 Series I
In 2017, the Belmopan City Council followed suit with its 2016 Series I Municipal Bonds, designed by Legacy Fund Limited and raising $6,500,000.00. Proceeds went towards:
- Enhancement of streets and drains;
- Retirement of the Holy Redeemer Credit Union term facility;
- Purchase of machinery and equipment; and
- Costs incurred in structuring, sale and delivery of the bonds.
Why it matters
Each bond issuance deepens Belize's capital market. A track record of successful issues builds investor confidence, improves pricing for future borrowers, and gives municipalities a disciplined, transparent financing tool. It also gives everyday Belizeans a way to participate in — and benefit from — the development of their own communities.
Key takeaways
Municipal bonds are infrastructure financing, not just debt. They match long-term assets with long-term capital, reduce reliance on bank overdrafts, and strengthen the local financial ecosystem with every successful issue. If your council or institution is considering a bond programme, the first step is a conversation.
