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 large team of local volunteers turned out to clear rubbish from the old railway line between the former Dunfanaghy and Falcarragh station sites, in advance of the Coastal Cancer Challenge.This race which will take place on Saturday next the 21st of July will see competitors complete a 12km cross country run, 2 km sea kayak, a mountain hike of 3km, two cycling stints of 17 and 24km.Proceeds raised from this event will be going towards Relay for Life Donegal – Irish Cancer Society, Action Breast Cancer – Irish Cancer Society, Donegal Hospice and Letterkenny Rugby Club. The Coastal Cancer Challenge will take in some of the most amazing scenery in Ireland on its circuit around Northwest Donegal. One of the cycle sections will run along the old Lough Swilly Railway that was part of the clean up on Saturday.The railway line was a vital mode of transportation for a half a century with regular services between Letterkenny and Burtonport running from 1903 to 1953. It connected the coastal areas of Northwest Donegal with the extensive rail network throughout Ireland at the time, before the advent of better roads.Although the steel of the rails and bridges have long since been scrapped the lines remain largely intact and passable on foot. Community groups have begun to reclaim parts of the line. Hopefully the future will see these areas extended and linked to create an amazing local amenity and superb tourist attraction.Unfortunately some parts of the line, such as the stretch between Falcarragh and Dunfanaghy, have been used for the fly tipping of domestic waste creating an ugly eyesore for passers-by. The gathering and disposal of this rubbish is to be greatly welcomed with much thanks to all those involved. In addition to the army of volunteers gathered the garbage on the day, the clean up was supported by Donegal County Council who provided refuse sacks, litter pickers, and a lorry to haul rubbish away.Michael McGarvey, who if from Falcarragh and is a Senior Engineer with the Council was on hand to coordinate the work. Some local businesses also generously supported the enterprise with Muckish Sand & Gravel providing a JCB to lift and tip the waste, and Ferry’s Refuse supplying a skip for disposal.For More Information on the Coastal Cancer Challenge go to www.coastalcancerchallenge.com VOLUNTEERS FILL FOUR TRUCKS IN COASTAL CANCER CHALLENGE CLEAN-UP was last modified: July 15th, 2012 by StephenShare 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) Tags:clean-upCOASTAL CANCER CHALLENGE