FortisTCI Limited (the Company) and the Turks and Caicos Islands National Insurance Board (NIB) held a joint press conference to announce the closing of a US$5 million bond agreement. The closing consisted of a US$5 million 5.14% Bond Issue 2016/2031, due by July 1, 2031.
The net proceeds from the bond issue will be used to finance a portion of the Company’s estimated capital expenditure of approximately $70 million during 2016 and 2017 and will be paid 100% at par value plus accrued interest on redeemed amount.
Negotiations for this bond began in February of this year. It was during this period that members of the FortisTCI Senior Management Team met with the NIB Board of Directors to provide a complete overview of the Company’s operations and for the NIB to conduct its due diligence exercise.
The NIB has a bond portfolio valued at US$40,359,465 (unaudited) at the end of April 2016. Historically, the NIB has always made special provision for local investments in its portfolio, which is guided by the Domestic Investment Policy in the Investment Policy Statement.
The NIB believes that besides the social impact of investing locally that the TCI being a rapidly growing economy provides an opportunity to earn competitive risk-adjusted returns. Over the years, the NIB has primarily invested with the public sector or with quasi-government entities but has also invested in private entities. While historically this investment is not the largest local investment to date, it is significant in terms of the fact that it affords the people of the Turks & Caicos Islands an avenue to invest in a local reputable and fiscally sound company through their contributions entrusted to the NIB.
NIB Chairlady Lillian Misick added that “The Board of Directors believes that this investment with FortisTCI represents the ideal type of local investment that the NIB should be pursuing, considering the underutilization of funds allocated for domestic investment. It also provides the opportunity for the Board to pursue its mandate to grow the fund to meet its future statutory obligations.”
FortisTCI President and CEO Eddinton Powell said, “We are pleased to have reached an agreement with the Board of Directors of the Turks and Caicos Islands National Insurance Board. FortisTCI is indeed a strong company and a good investment that the Turks and Caicos Islands can be proud of. I join in celebrating this landmark achievement for FortisTCI, the NIB, and the people of Turks and Caicos Islands. I hope that this bond investment by the NIB in FortisTCI will be the first of many.”
