NCBFG closes multi-billion dollar bond offer in Trinidad
NCB Financial Group Limited (NCBFG) through its Trinidad and Tobago subsidiaries, NCB Merchant Bank (Trinidad and Tobago) Limited (NCBMBTT) and Guardian Group Trust Limited (a subsidiary of Guardian Holdings Limited), has closed its largest bond offer to date.
Issued at a nominal face value of TT$2 billion, the Government of the Republic of Trinidad & Tobago (GORTT) fixed rate bond was issued in three tranches of five, 12 and 20 years at interest rates of 4.09 per cent, 4.91per cent and 6.50 per cent respectively, NCBFG stated in a release.
Marli Creese, the acting Chief Executive Officer at NCBMBTT, expressed his satisfaction with the achievement, stating, “The successful closure of the GORTT TTD 2 Billion bond marks a significant milestone in our steadfast support for the Government. Over the past seven months, NCBMBTT and Guardian have jointly co-arranged over TTD 4 Billion in Government of Trinidad and Tobago bonds.”
Creese further commented, “Fixed income bonds have become increasingly appealing to investors, and we are delighted by the strong reception. The success of the bond issuance demonstrates the resilience and depth of both businesses, NCBMBTT and Guardian, in providing unprecedented access to a wide range of investors seeking wealth-building opportunities.”
The fixed rate bond, which was oversubscribed, will be used to refinance existing Government of the Republic of Trinidad and Tobago debt. In the government bond markets, oversubscription often reflects investors’ broad confidence in the creditworthiness of the sovereign, among other factors, NCBFG stated in the release.
Steven Gooden, CEO of NCB Capital Markets Limited and Chairman of NCB Merchant Bank (Trinidad and Tobago) Limited, lauded the strategic collaboration with Guardian Holdings Limited, saying, “NCB Financial Group Limited’s investment in Guardian Holdings Limited has continued to yield tangible synergies. As one of the largest capital market transactions closed with the financial group, the TTD 2 billion bond issuance for the GORTT reaffirms NCBFG’s prominent position in the investment banking sector in Trinidad and Tobago. Our teams at NCB Merchant Bank (Trinidad and Tobago) Limited and Guardian Group Trust Limited continue to generate remarkable synergies in the local capital markets.”
The law firm of M Hamel-Smith & Co were the co-Arrangers’ counsel for this transaction.