Sep 2004 Financial News

RBTT raises $20m for BAMC

Sep 29, 2004

In its pursuit of regional capital market development, RBTT Merchant Bank Limited recently executed a $20 million bond issue, which it fully arranged and successfully placed with investors in the region for the Barbados Agricultural Management Company Limited (BAMC).

This transaction follows the execution of several merchant banking financings in Barbados, but represents the first Government-guaranteed arrangement.

BAMC’s principal activity is the management of Barbados’ sugar industry assets, and the Government of Barbados has guaranteed payment of principal and interest on all bonds issued by the company in accordance with the Sugar Bonds Guarantee Act.

“This transaction reflects not only Merchant Bank’s commitment to regional capital market development, but that of the Barbados capital market in particular,” said Mark Singh, RBTT Merchant Bank managing director.

“It is envisaged that with the acquisition of Caribbean Commercial Bank by RBTT, the RBTT Merchant Bank will be better positioned to deliver innovative financing solutions to its Barbados clients.”

RBTT Merchant Bank has raised more than $4 billion in the past two years for governments, state entities and corporates in the region.

Meanwhile RBTT has successfully closed its dual-tranche two-year syndicated facility at $230 million, after raising over $300 million in commitments – the highest syndicated financing by a financial institution in the Caribbean.

The transaction was initially launched in the international capital markets at $140 million, but was increased because of the tremendous interest.

“This, no doubt, attests to our excellent reputation and credit rating in the international financial community,” said Lyndon Guiseppi, deputy managing director of RBTT Bank Limited.

“This substantial interest that international entities have demonstrated in working with RBTT suggests that we have made significant strides in establishing a dynamic presence in the global financial arena.”

The syndicate members include 16 banks from the United States, Europe, Latin America and Asia, with RBTT’s major partners being ING Capital LLC serving as lead arranger, along with co-arrangers Wachovia Bank N.A., Natexis Banques Populaires, and Dresdner Bank Lateinamerika A.G.

“Engaging in this activity enables RBTT to meet its goal of being the pre-eminent financial institution in the region,” said Kerri Maharaj, treasurer, RBTT Bank Limited.

RBTT, recognised as the Number 1 Caribbean-owned banking and financial services institution in the region, maintains its BBB – investment grade rating by Fitch Ratings.


Source: Barbados Nation