NICIL for regional tour to seek funds for GuySuCo -with new bond facility

The National Industrial and Commercial Investments Limited (NICIL) yesterday announced plans to launch a “targeted roadshow” across the Caribbean as it seeks to raise funds for the Guyana Sugar Corporation (GuySuCo) through the issuance of a syndicated bond.

According to a statement from the government holding company, it has officially issued a US$150 million (G$30 billion) equivalent bond facility, arranged by Republic Bank Limited exclusively through its Investment Banking Division. The local law firm London House Chambers, headed by Devindra Kissoon, is acting as transaction attorney.

The statement explained that the bond will be issued in multiple tranches, with the first tranche of roughly G$17 billion or US$85 million equivalent having already been issued to local investors on May 24th, 2018.

NICIL expects to raise the remaining sum of US$65 million within the next few months through a combination of local and regional investors. The roadshow which will be launched within the coming weeks will “likely include investor briefings in Trinidad and Jamaica,” the statement said.

On May 12th, government requested that the National Assembly approve an increase in the value of loans secured by any public corporation for which it may stand as guarantor.

The request was granted and the value increased to sums up to and including G$50 billion.

In presenting the motion, Minister of Finance Winston Jordan noted that in light of government’s impending guarantee of a G$30 billion syndicated bond for GuySuCo, “it has become urgent” that government is able to stand guarantor. Government has since guaranteed the loan and NICIL has issued the bond.

Yesterday’s statement explained that with the issuance, NICIL becomes the first public issuer to raise debt in the local capital markets in over 10 years.

The statement said the bond is the largest ever bond facility arranged in Guyana and was oversubscribed by local investors on the first tranche. Its proceeds will be used towards capital expenditure and general operations for GuySuCo.

“NICIL’s team led by Colvin HealthLondon, the head of its Special Purpose Unit, secured the bond to recapitalize… GuySuCo’s operations. Historically, cashstrapped GuySuCo struggled on its own to raise the funds needed to revamp its operations.

However, under the management of Mr. Heath-London, funding was secured through the stated-owned entity with the support of the Government of Guyana through a sovereign guarantee,” the statement reiterated