(Trinidad Guardian) Planning Minister Pennelope Beckles is confident that IDB Invest’s US$150m deal with the Massy Group will be a perfect incubator for future collaboration between the bank and the Government.
The Minister made this prediction while addressing the signing ceremony for the deal at the Hyatt Regency on Monday.
“I want to say that whilst it might have appeared that there may have been some challenges in finalising this project, I think this is going to help us. The IDB, IDB invest, as well as the Ministry of Planning, to be able to use this, in a sense, as a bit of a test case for us. Because there were a number of meetings we had with IDB invest, and it’s always important that we get it right,” said Beckles who arrived at the ceremony after the signing due to swearing in of the Cabinet on Monday.
Beckles, who was initially unsure if she would be able to attend until her re-appointment in the post, was adamant she should speak at the event given the extensive work she had done in securing the deal between IDB Invest and Massy Group, which is titled Advance Sustainable Development in the Caribbean and Beyond.
She said the success of the project is expected to benefit Trinidad and Tobago and the wider Caribbean region, noting that it was an expansion of the IDB’s investment in Trinidad and Tobago.
“The IDB Invest portfolio in Trinidad and Tobago includes five operations, with companies such as Home Mortgage Bank, Trinidad and Tobago Mortgage Finance Company , and Trinidad Tissues Ltd. With today’s signing, the total value of this portfolio will rise to US$307 million,’ said Beckles.
Massy’s deputy group CEO, James McLetchie, said the deal had reaffirmed the ambition and strategy implemented by the Massy group, and the “innovative financing” allows the group the continue its growth. He stressed that it would also help with the company’s push to become a net foreign exchange generator.
“This relationship positions us, not only for financing in 2025 but more importantly, beyond and as we want to become a stronger net contributor of US dollars in our country. Some of that financing will have to come from outside of this market. This is the first step with a partner that is well established internationally to help us access capital outside of this market,” he said.
Last month, the Massy board approved a long-term financing package among the company, its wholly owned subsidiary, Massy Integrated Retail Ltd and IDB Invest.
The financing totals US$150 million in unsecured funding, comprising US$90 million in term financing with a ten-year tenor, a 36-month grace period and a US$60 million in revolving supply chain financing, with an initial five-year availability, structured in two tranches—a US$35 million committed import finance loan and a US$25 million uncommitted facility for import finance and accounts payable.
