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Sep 3, 2019

How Investors Were Chosen for NGCL

Dr. Gilbert Canton

In July of last year, an agreement was signed with the Barrow administration formalizing the partnership and shareholders were sought thereafter.  Those investors include Michael Bowen, President of Bowen and Bowen Ltd., Marion Usher and B.W.T. Holdings, an international concern with significant investments in Valley of Peace Farms Ltd., Cayo Grains and TexMar Shrimp Farms.  Canton further outlines how those investors came on board with the project.

 

Dr. Gilbert Canton, Managing Director, NGLC

“We signed the definitive agreement in July 2018 and since then we’ve been getting shareholders on board, getting financing in place.  You know, one of the aspects that was really positive in this whole project, aside from bringing the LPG at a better quality, better pricing and with the energy security is the modality that we are using to actually fund it, in terms of the debt side of it.  On the debt side of it what we’re talking about is using project bonds, not government bonds.  These are not municipal papers that are backed by government guarantees, government doesn’t guarantee this at all.  These are project bonds that the project has to pay back and this is kind of new in Belize.  And then we were targeting institutional investors that had all this money sitting in the banks and not making much interest on it, so it’s not making the organizations as viable as it could be and now here is an opportunity to go from maybe one and a half to seven percent which we’re offering as the coupon value on the bonds and that gives us, for those institutions it’s a better investment opportunity and then that spreads back to their members or whoever they represent, pension funds or the credit unions or whatever.”

 

Isani Cayetano

“Let me stick a pin and ask a question from there.  Does this then explain why the composition of the board or the directors, in a manner of speaking, is the way it is, based on these strategic investors?  You have Michael Bowen of Bowen & Bowen and other persons?”

 

Dr. Gilbert Canton

“So what we did in terms of the shareholders, we recognized that since this is a private/public partnership it’s essential that the government be on board so they know what is going on at all times, that they are part of the decision making for the company and everything to do with that.  So the government got twenty-five percent of the shareholding to do that.  So we then went out for investors.  We needed, because of the way the project is built, it’s really tanks, pipes, motors and that kind of stuff.  It’s all imported and so there’s a huge U.S. dollar demand for it, so what we said we’d just try to get some investor that would come in, a U.S. investor that could bring us some U.S. dollars.  So that’s where we brought in BWT Holdings.  They are an investor in Belize, a proven investor in Belize.”

 

We’ll have more on the National Gas Company in Wednesday’s newscast.

 


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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