US$150M bond…notes that GuySuCo still buried in over $70B of debtFinancial Analyst Dr Peter RamsaroopFinancial analysts are expressing concern over the announcement that the National Industrial and Commercial Investments Limited (NICIL) has secured a US$150 million (Gy$30 billion) bond to finance its administration of sugar estates.It is a syndicated loan that will have to be repaid within five years at a rate of 4.75 per cent interest. The consortium of investors behind the bond comprise the National Insurance Scheme (NIS) and the Guyana Bank of Trade and Industry (GBTI).According to financial analyst Dr Peter Ramsaroop, the repayment of this loan will have ramifications for Guyana’s oil revenues. He noted that while there has been talk of selling lands to repay the loan, the Guyana Sugar Corporation (GuySuCo) is already buried in over $70 billion in debt. This, Ramsaroop noted, is almost three times the value of the bond.SPU head Colvin Heath-London“The US$150 million also has to be seen in the context of Guyana’s already increasing debt portfolio and diminishing revenue stream. Such a large loan is contingent on the successful turnaround of the now defunct estates,” Dr Ramsaroop has charged.“It is dependent on a reduced debt portfolio and increased revenue streams—a reduced debt portfolio and increased revenue stream based on oil revenues. This in itself poses even more pitfalls,?” he expanded.Dr Ramsaroop notes that the NIS will be expected to inject billions into the venture to recapitalize the remaining estates: Albion, Blairmont and Uitvlugt. According to Ramsaroop, the decision to arrange the loan should have never been taken in the first place.“There is also the fact that, to sweeten the pot for the consortium, a Government guarantee has been given. This (is) in addition to the increasing of the debt ceiling in the National Assembly for loans to be guaranteed by Government,” he said.“While the decisions have already exposed the treasury to billions in further liability, the move has now created a precedent,” Ramsaroop explained. “Precedents then set the stage for future similar transactions.”Syndicated loanThe Guyana Sugar Corporation is already inundated in billions of dollars of debtIt was announced a few days ago that NICIL had issued a US$150 million bond facility through Republic Bank’s investment banking division, in order to raise capital for GuySuCo’s operations. It was also stated that London House Chambers Attorney Devindra Kissoon had helped arrange the transaction.The statement had explained: “With the issue, NICIL becomes the first public issuer to raise debt in the local capital markets in over 10 years. The bond is the largest ever bond facility arranged in Guyana, and was oversubscribed by local investors on the first tranche.”NICIL had also explained that: “the bond will be issued in multiple tranches, with the first tranche of roughly Gy$17 billion, or US$85 million equivalent, being issued to local investors on Friday, May 25, 2018.”According to NICIL, the money from the bond will be used towards capital expenditure and general operations for GuySuCo. But even with this US$150 million, there are still plans to raise a whopping US$65 million more to finance the complete revitalisation and recapitalisation process.In its release, NICIL said it expects to raise the remaining sum, equivalent to Gy$13.6 billion, within the next few months through a combination of local and regional investors.“A targeted road show is expected to be launched within the coming weeks that will likely include investor briefings in Trinidad and Jamaica” in order to raise the much needed funds, the release noted.RepaymentQuestioned during an exclusive interview on the GuySuCo repayment of the bond, SPU head, Colvin Heath-London, insisted that the SPU and GuySuCo were committed to ensuring that all the necessary repayments were made.He had been adamant that strict adherence to financial best practices would be followed within GuySuCo, to ensure that there was no wastage of revenues secured by the sugar company from its ongoing operations.But a source close to the SPU revealed that GuySuCo, with financial advice of NICIL and the SPU, would embark on a process that could see the company selling some $3 billion worth of spare parts that were currently lying in its storage bond.Also, a proposal has been made to secure another $10 million by selling scrap metal sourced from around the company’s East Demerara Estates. This publication was told that over the next few months, GuySuCo would embark on the process of selling prime real estate not being utilised. Some 4600 acres would be up for grabs.From that alone, it is understood, the SPU and GuySuCo hope to garner a whopping $50 billion if sold at different intervals. Further, the Unit could seek to secure some $265 million by selling GuySuCo lands in and around the Wales Estate.
“A poor decision when it comes to road safety could cause you a lifetime of regret” – that’s the warning issued by Gardaí today following the detection of a drug-driver in Letterkenny.A motorist was caught driving under the influence of cannabis during a roadside test on Monday 29th April.The vehicle was first stopped by the Roads Policing Unit for having a possible defect. The driver was subsequently tested for the presence of drugs and the test came back positive for cannabis. The driver has been ordered to appear in court in the near future.The incident sparked a warning from local gardaí, who posted on Facebook: “PLEASE do not ever drive with drink/drugs in your system. Have due regard for the safety of other road users who deserve to make it home safely. A poor decision when it comes to road safety could cause you a lifetime of regret!!!”Image: Garda Siochana DonegalGarda warning after driver caught drug-driving in Letterkenny was last modified: May 1st, 2019 by Rachel McLaughlinShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)
Related Posts Tags:#Analysis#Features#web 8 Best WordPress Hosting Solutions on the Market Top Reasons to Go With Managed WordPress Hosting A Web Developer’s New Best Friend is the AI Wai… Why Tech Companies Need Simpler Terms of Servic… The US Securities and Exchange Commission is considering a ban on a stock market practice known as “flash trading,” where supercomputers get access to information milliseconds before other traders and can rapidly buy and sell in ways that are argued to influence the market unfairly – thus discouraging mere mortals from participating. Many bleeding-edge trends in the consumer web play out writ large in financial markets; as all of us look at the growing prominence of real-time information on the web, the debate over flash stock trading raises issues worth considering outside the stock markets as well. If the real time web at large grows up open and democratic, then we’re likely to see innovation, understanding and growth. If it’s priced out of reach to all but marketing and state interests, then an experience analogous to that of small-time stock traders today could become what the web at large looks like.It’s easy for technologists to say that this is progress and rejecting the advantages technology brings would demand a return to time before the abacus. It’s not so easy to explain why we have to take an all-or-nothing approach to judging technologies and their implications – why not look at them one at a time and evaluate them intelligently? Here’s how the introduction of real time information is being debated regarding financial markets, followed by some thoughts about the analogous transformation going on around the web.This isn’t just a story about robot stock traders and the SEC; it’s also a story about Twitter, Facebook and the Pushbutton Web.Robots in Financial MarketsLast month the New York Times’ Charles Duhigg wrote a high-profile story about the practice of high frequency trading, including this juicy description of the practice:Powerful algorithms — “algos,” in industry parlance — execute millions of orders a second and scan dozens of public and private marketplaces simultaneously. They can spot trends before other investors can blink, changing orders and strategies within milliseconds.High-frequency traders often confound other investors by issuing and then canceling orders almost simultaneously. Loopholes in market rules give high-speed investors an early glance at how others are trading. And their computers can essentially bully slower investors into giving up profits — and then disappear before anyone even knows they were there.Rich Miller, writing at Data Center Knowledge, a blog that tracks the powerful computers that high frequency traders (among many other industries) use, called the article one-sided and inconsiderate of the argument that “this activity provides liquidity to execute trades that would otherwise not be possible, making the market more efficient.” He also said the press was widening the debate over the practice by bringing it into the mainstream.Now U.S. Senator Charles E. Schumer (D-NY) has sent a letter to the SEC this week, calling for action to be taken against the practice of flash trading in particular, the act of selling for a fee access to trading information milliseconds before it is otherwise available. He argues that the practice “creates a two-tiered system where a privileged group of insiders receives preferential treatment, depriving others of a fair price for their transactions. If allowed to continue, these practices will undermine the confidence of ordinary investors, and drive them away from our capital markets.”Schumer focuses on the early access to information, but always in the context of the computer-driven trading that occurs based on it.Trader John Hempton writes that critics over-estimate the financial impact of flash traded stock, needlessly complicating a situation that he describes with the following, fascinating, story:We trade electronically at our fund. We were recently trading in a stock with a large spread. I have changed the numbers so as not to identify the stock – but the ratios are about right. The bid was about 129.50, offer was about 131.50. We did not want to cross the spread – so when we bid for the stock we bid $129.55. Within a second a computer (possibly at our own broker but it makes no difference which broker) bid $129.60 for a few hundred shares. We fiddled for a while changing our bid and watching the bot change theirs. We would have loved to think we were frustrating the computer – but alas it was just a machine – and we were people up late at night.Actually obtaining the stock required that we paid up – and when we did so it was probably a computer that sold the stock to us.…It is always there – even when buying defaulted debt that trades once per month. We simply ALWAYS find the bot. What About Real-time Robots on the Web?Could the real time web give some people such an unfair advantage over everyone else that non-early adopters of new technologies or people outside of marketing firms could be left out in the cold? Presuming we’re talking about important, actionable information online and not just real-time chat and fun – it’s possible. The question is: will the most important parts of the real time web be open and democratized, or proprietary and shared only with those who can pay a high price for access? That question hasn’t been answered yet.If you were among the people who purchased the new Breaking News Online (BNO) iPhone app (released an eternity ago, yesterday!) then today you probably found out about the two US journalists being freed from North Korea and the shooting in Pennsylvania at least 45 minutes before almost anyone else did. (CNN posted a link to local PA news 45 minutes after the BNO network published.) That notification system costs $1.99 to purchase and $1 per month to stay subscribed.If you’ve visited Yahoo’s social-bookmarking turned real-time news service Delicious since this morning, you’ve seen that hot news links are now found not just by vote counting, but with a new method augmented by tracking the open, rapid conversations on Twitter.These are innovations built out of elbow grease and publicly available feeds of data. Yahoo might be, but the scrappy guys at Breaking News Online definitely aren’t, using software something like IBM’s new stream processing software, for which it will charge “at least” hundreds of thousands of dollars.No, this real-time public web is very low cost and increasingly both open sourced and decentralized. It’s akin to what Anil Dash calls the pushbutton web.Pushbutton is a name for what I believe will be an upgrade for the web, where any site or application can deliver realtime messages to a web-scale audience, using free and open technologies at low cost and without relying on any single company like Twitter or Facebook. The pieces of this platform have just come together to enable a whole set of new features and applications that would have been nearly impossible for an average web developer to build in the past.As long as it’s open and low cost, real time information on the web should be as democratic and fair as computer use is. It’s not perfect, but it’s no longer the David and Goliath-on-steroids fight that critics of high frequency stock trading say that market has become because of real time stock data.The Risk: FacebookThe real time web is a shimmering mass of conversation and data, but there’s no guarantee that it’s going to stay open, free and democratic forever. Already, in fact, there’s no bigger river of the real time social web than Facebook. Facebook is simply huge, it holds huge sums of information and so far it allows aggregate access to no one. As far as we know. If Facebook, or some other equally important site of the real time web, began offering access to its data but pricing mere mortals out of that market – then we could have a situation where individual software developers and social scientists were like grandpa reading the stock pages in the newspaper and huge marketing firms and government agencies had the kind of advantage that high frequency traders are alleged to have in financial markets.Anil Dash puts it this way:Pushbutton technologies are not just free and open, they’re decentralized, which is a serious threat to the “lobster trap” model of social software. We can expect serious competition from the centralized networks that are currently building these sorts of systems. If a threat arises to Pushbutton’s adoption, this is the most likely source. Worry? Definitely.In addition to development concerns, there are also analysis concerns. If stock trading equals liquidity and knowledge is the new currency, then open access to aggregate data could be the equivalent of high-powered stock-trading tools for all instead of for just the already-richest few.Some research has already been performed on the connection between communication on social networks and real-world events. The Information and Language Processing Systems Informatics Institute at the University of Amsterdam, for example, correlated mood messages on LiveJournal closely with world events. (“Mass increase in the level of worriedness around major weather phenomena, such as hurricane Katrina on August 29, 2005 – Excitedness around global media and culture events, such as the release of a new Harry Potter book on July 15, 2005 – Mass increase in the level of distress and sadness after terror attacks, as witnessed by the response to the London bombings on July 7, 2005.”)Analysis of real time mass communication could lead to a world of innovation and understanding – if that communication is an open fire hose of data and not shared only with deep pocketed commercial partners.Everything is Complicated, Some Can Afford to Ponder ItIs high frequency, low latency, computer executed, “flash” trading unfair? It must feel that way to individual and small investors who can’t afford killer number-crunching robots – but it’s also pretty awesome technology and is said to provide liquidity that the markets depend on.Could the real time consumer web be made undemocratic by being priced out of reach for edge-case developers and social scientists outside of government and the corporate world? That could happen. As we speak, though, there’s a lot of innovation going on in the real time web that’s open, based on standards and available to all of us. Let’s hope it stays that way marshall kirkpatrick
India opener Shikhar Dhawan Tuesday said the selectors have picked a “very strong side” for the ICC World Cup starting May 30 in the United Kingdom.The MSK Prasad-headed selection committee Monday named a 15-member squad, which will be led by Virat Kohli, with Rohit Sharma being his deputy. Dinesh Karthik pipped Rishabh Pant in the fight for the second wicketkeeper’s slot.”For the World Cup we have a very good and a strong side and we are looking forward to the competition. We will perform really well once we get there,” Dhawan said at an event organised by Fortis Healthcare and Delhi Capitals to raise awareness for organ donation.Talking about his IPL side Delhi Capitals, who are currently placed second on the points table with five wins from eight games, Dhawan said the experience of coach Ricky Ponting and advisor Sourav Ganguly is helping the side.”The support of the coaches Ricky Ponting and Sourav Ganguly… Their experience as a captain along with the belief they instil in us is great. At the same time, the young boys in our team are also getting mature.””It has been a good season for us. It’s a clean slate for the Delhi franchise, new name, new administration, support staff everyone was new. Our team is strong and is a balanced side with the overseas and Indian players. The way we are performing is good.”The stylish opener missed out on his maiden century of the season when teammate Colin Ingram hit a six to give Capitals a seven-wicket victory, but Dhawan has no regrets.advertisement”I was not thinking of the century, it was more important to win the match. At that time it was important to hold on to my wicket and take the team over the line because we had lost a couple of matches from a winning position.””People are only seeing that I missed my century by three runs but they should also see that I score a 97. If I have scored it once I can score it ten times more,” Dhawan said.Also Read | Dinesh Karthik celebrated World Cup call-up with RosogollasAlso Read | Robin Uthappa on Dinesh Karthik World Cup selection: Justice has been doneAlso Read | Dinesh Karthik: Very excited, dream come true to be part of this World Cup team