Kingston, Jamaica, July 22, 2005 — The
International Finance Corporation, the private sector arm of the World
Bank Group, facilitated Trinidad Cement Limited (TCL) in structuring and
arranging a US$105 million equivalent financing package that will help
TCL expand and modernize its Jamaican subsidiary, Carib Cement, while reducing
carbon emissions and improving environmental standards. The TCL Group
is the dominant supplier and only integrated cement producer in the English-speaking
Caribbean.
Today IFC signed an agreement with TCL to provide US$35 million in senior
and subordinated loans. In addition, IFC helped TCL raise financing
totaling US$70 million equivalent from regional banks, which includes a
US$20 million loan and a US$50 million equivalent bond issue in Trinidad
and Tobago dollars. Both the local loan and the bond issue are being
undertaken by Republic Finance and Merchant Bank Ltd in Trinidad.
Brian Young, Chairman of Carib Cement, said, “Using its considerable global
experience, knowledge of the cement industry, and expertise in sustainability,
IFC is supporting Carib Cement’s long-term plans and investment program,
which will significantly improve efficiency and lower costs.” He
added, “We value IFC’s commitment as a long-term partner and are pleased
that it responded to our tight schedule for funding in a very prompt and
efficient manner.”
The TCL Group is currently strengthening the cement sector of its business
by expanding capacity and optimizing its plants. The company is establishing
cement terminals regionally, thus geographically diversifying its concrete
operations. It is also introducing new products, such as Carib Cement
Plus in Jamaica
Kirk Ifill, IFC’s Caribbean Regional Manager based in Trinidad and Tobago,
noted, “This is an excellent example of how IFC provides value added services
to companies, in addition to capital. It is a landmark investment
for Jamaica, as IFC is leveraging TCL’s regional presence to help Carib
Cement access financing in Trinidad and Tobago at longer tenors and better
terms. The company would otherwise be constrained by Jamaica’s sovereign
ceiling for long-term debt.” He added, “The investment launches
an important partnership with the TCL Group in a high-impact segment of
the Jamaican economy.”
IFC’s investment will help improve the local availability of cement and
will promote investment in infrastructure, industry, and the housing sector.
Carib Cement’s modernization of the plant will improve its environmental
performance, including significant 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.
In the Caribbean, IFC is the leader in providing long-term financial instruments
and sustainability products to help companies grow and compete in the global
economy. In the last five years, IFC's Caribbean portfolio has tripled
from $173 million in FY01 to $541 million today. The major sectors
of IFC's portfolio in the Caribbean are finance and insurance ($130 million),
utilities ($112 million), transportation ($95 million), manufacturing ($63
million), tourism ($46 million), and telecommunications ($45 million).
The mission of IFC (www.ifc.org)
is to promote sustainable private
sector investment in developing countries, helping to reduce poverty and
improve people’s lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to governments and businesses. From its
founding in 1956 through FY04, IFC has committed more than $44 billion
of its own funds and arranged $23 billion in syndications for 3,143 companies
in 140 developing countries. IFC’s worldwide committed portfolio as of
FY04 was $17.9 billion for its own account and $5.5 billion held for participants
in loan syndications.
A major objective of
the TCL Group’s expansion plan is to satisfy a regional market that continues
to be very buoyant, as construction activity remains very strong. The Group
is positioning itself to satisfy its markets and to take advantage of opportunities
for additional exports. The outcome of the capacity expansion will be a
lower cost of production per ton of cement, which will increase the company’s
competitiveness.