Republic Bank funds TCL bond

Republic Bank funds TCL bond
Published: 14 November 2005

Republic Finance & Merchant Bank Limited recently provided Trinidad Cement Limited (TCL) with a US$20 million loan and a TT$315 million bond issue. The financing package, which was structured and arranged by the International Finance Corporation in conjunction with Republic Finance and Merchant Bank Limited, will facilitate the expansion and modernisation of TCL’s Jamaican Subsidiary, Caribbean Cement Company Limited (CCCL).

According to Cheryl Greaves, Managing Director of Republic Finance & Merchant Bank, “This capital market transaction fits in with Republic Finance & Merchant Bank’s commitment to being a catalyst for the development of the Caribbean region. The products of TCL are important inputs into the growth and expansion of regional infrastructure. It is also important to demonstrate the capacity of indigenous financial institutions to raise capital of the size of this transaction and for the purpose identified.” She added, “This is an extremely important partnership with the TCL Group as it not only encourages self sufficiency in cement production in the region, but also facilitates cross-border flows of capital.”

The TCL Group is the dominant producer and supplier of cement in the Caribbean Community (CARICOM) and also has vertically integrated operations in the pre-mixed concrete and packaging sectors through its subsidiaries. In its effort to supply one hundred percent of CARICOM’s cement needs at regionally competitive prices, TCL has embarked on an Optimization and Capacity Upgrade Program.

Carib Cement’s modernization of the plant will improve its efficiency and environmental performance, including significantly reducing its emissions of carbon dioxide, a greenhouse gas that contributes to global warming and climate change. This reduction should make the operation eligible for carbon credits under the IFC-Netherlands Carbon Facility – a first for Carib Cement and for IFC in the Caribbean.

TCL Group chief executive officer, Dr. Rollin Bertrand said, “Republic and TCL are companies indigenous to the Caribbean that wholeheartedly seek to develop the region using their own particular expertise. TCL has partnered with Republic on many occasions before and we know that we are doing business with a company that, like us, has the region’s best interests in mind at all times. He went on to add, “This development of Carib Cement’s operations ensures a higher quality, more customized product for the consumer at the very best prices with the lowest possible costs to the environment. Both parties understand the value of this to the region.”