Barbados Port Inc. refinancing with a $100 million bond issue

Barbados Port Inc. (BPI) has successfully concluded a $100 million refinancing arrangement, which better positions the company to execute key elements of its business strategy.

BPI formally concluded all legal and administrative requirements for a $100 million Bond, which will refinance the company’s previously issued Bond facility, at much more favorable interest rates.

The new Bond will be issued with maturity dates in three tranches: a five-year tranche at an interest rate of 4.2 per cent, a 10-year at 5 per cent and a 15-year at 5.5 per cent.

The new deal, brokered through NCB Capital Markets (Barbados) Ltd, makes capital available for transformation of the Port of Bridgetown.

Minister of Maritime Affairs and the Blue Economy, Kirk Humphrey, who has responsibility for the Port, said: “BPI is getting ready to launch a new 10-year master plan 2020-2030 which is in its final stage now. Once that is completed, not only will the country see a new look BPI as a company, but also the roll out of several new projects and modernisation of port operations. Some of proceeds of this issue will also be used primarily for recapitalization, new equipment acquisition, enhancement of border security systems and repayments to existing bondholders of the older facility. Even in the midst of a global crisis we are looking ahead in the interest of Barbados.”

BPI Chairman, Senator Lisa Cummins, said: “When we started this process last year, finalized the structure of the bond a few months ago and set the closing date for March 31 2020, we could not have imagined that the market would have been what it is today as a result of COVID-19. Yet, we pushed through and the team put in a herculean effort to ensure we could get this far in this climate. We still have to get to full closure and in the coming weeks we expect to be able to do that. In addition, coming out of our Master Plan, we also expect to launch the first BPI Investment Plan and host the first Investment Symposium in partnership with our financial partners. That will be the next phase.”

BPI Chief Executive Officer, David Jean Marie, explained that the new issue has reached the upper end of the target range, where commitments were set initially in excess of $100 million.

He anticipates that the Bond will be fully subscribed in the very short term in spite of the current economic uncertainties. The CEO revealed that the vast majority of bondholders in the previous Republic Bank-managed facility opted to roll over into the new Bond. New entrants were also attracted to the new facility, confirming investors’ confidence in the credit quality of the Port.

The Bond is currently subscribed by a diverse range of local and international, large institutional and smaller individual investors.

NCB Capital Markets Barbados Chief Executive Officer, Simona Watkis, said NCB is proud to have partnered with Barbados Port Inc. to close this Bond offer in spite of the global challenges being faced.

“We look forward to the continued collaboration with the Port on their plans for the country, and by extension the Government of Barbados in the restructuring and rebuilding of the economy,” she said. (PR)