The New Hayven Merchant Bank (NHMB ) yesterday announced that it has successfully arranged, acted as collateral, and served as administrative agent for a US$25 million financing facility extended to Vreed-en-Hoop Shorebase Inc. (VEHSI).
“This financing marks a significant milestone in facilitating VEHSI’s first-of-a-kind oil and gas infrastructure project in Guyana. Collaborating closely with an external financial entity, New Hayven Merchant Bank spearheaded the structuring and deployment of this financing arrangement, tailored specifically to meet the unique requirements of VEHSI’s project. The collaboration underscores New Hayven’s dedication to providing innovative financial solutions and supporting transformative initiatives that drive economic progress,” the company said in a statement.
It quoted Floyd Haynes, Founder and Chairman at NHMB as saying, “Our partnership with VEHSI in this landmark project exemplifies our commitment to fueling growth and fostering sustainable development.”
“As Guyana undergoes profound transformation, we are proud to serve as a trusted financial partner, providing tailored financing solutions and expertise to enable businesses to thrive in this dynamic environment.”
New Hayven Merchant Bank stated that its commitment extends beyond this collaboration, as it continues to actively engage with other providers of risk capital to deliver bespoke financing solutions and deploy capital across diverse sectors within Guyana.
“By facilitating access to capital and fostering strategic partnerships, New Hayven aims to catalyze growth and drive economic prosperity throughout the region,” the company stated.
And as Guyana emerges as a pivotal player in the global energy landscape, the bank said that this country now “presents unparalleled strategic investment and development opportunities.”
“New Hayven Merchant Bank recognises the immense potential of the Guyanese economy and remains steadfast in its commitment to empowering businesses operating within the region,” the statement said.
The VEHSI facility on the West Coast of Demerara which is sited on this country’s first man-made island has suffered work delays and the death of a worker. Last month,36-year-old Health and Safety worker Rusbel Jesus Rengel Azocar died on the facility,
“At approximately 18:40 hrs on February 10th, 2024, there was an industrial accident at the Vreed-en-Hoop shorebase. This resulted in a fatality, which unfortunately, claimed the life of a foreign national working with a subcontractor,” the company said
Stabroek News was told that the project, “Is coming in late, in terms of handing over, but this would not affect anything with Exxon and there is no cause for alarm.”
The first phase of the project was expected to be completed by December last year but sources had said that there would have been a two-month delay in that aspect, given the technicalities of the work programme and other factors relating to construction.
Now nearing the end of a third month, the project is still not complete and no exact dates were given in terms of its handing over.
This newspaper had reached out to the company for insight into engineering and other works done here, including an overall update of the project but was told, “There will be no comment from the company at this time.”
Stabroek News was told by sources that some foundation pipes were flooded and this would necessitate a delay of months in terms of readiness. Sheet piles had also opened up causing sand to pour out of several areas. This required remedial work which will be added to the US$300m price tag.
In its first phase, the project is expected to add more than 44 acres to Guyana’s coastline. Phase one of the project is meant to be the special purpose vehicle to serve as a SURF (Subsea, Umbilicals, Riser, and Flow lines) Shorebase for projects of ExxonMobil’s subsidiary, Esso.
Some 10 acres were to be made operational by December 2023, with additional acreages delivered by the second quarter of this year.
