Antigua sweetens TT investors

ANTIGUA AND BARBUDA is offering special incentives for Trinidad and Tobago manufacturers to take advantage of an economic boom, now sweeping that country. “There seems to be a lot of liquidity,” said Antigua and Barbuda Finance and Economy Minister, Dr Errol Cort,   in reference to TT’s financial system. He was in Port-of-Spain last week to promote a new T-bill and bond initiative which his government was in the process of opening up to all regional investors. His government is proposing to issue up to EC$51 million (to be distributed in three tranches of EC$17 million on March 15, mid-April and mid-May) and issue a ten-year EC$100 million bond in July.

Both T-bills and the bond will be placed on the Eastern Caribbean Securities Market. The Road Show  is intended to generate investor interest in Antigua and Barbuda Government securities, which will take the form of treasury bills and a long term bond. This presentation was the third in a series that took  place in several regional countries and in the US. The first took place in Antigua and Barbuda on February 13 while the second presentation was made in St Kitts on 16 February while Grenada was February 21. In total the Government intends to raise, with the assistance of ABI Bank Ltd, EC$151 million on the Regional Government Securities Market.

Cort said the rates of return — 6.5 percent in the first instance for the T-bills and  8.25 percent for the bond —  will be very attractive for regional investors and  views TT as a very important market. Attending the presentation were representatives from banking, insurance and investment management firms. These included the RBTT Merchant Bank Limited, the First Caribbean International Banking and Financial Corporation Limited, SAGICOR, Citigroup, CLICO Investment Bank Limited and Funds International Limited. 

The Manager of the Investment Department of the ABI Bank Ltd. and the Financial Secretary of Antigua and Barbuda also made presentations which detailed the structure and purpose of the securities issue. Participants indicated that the various strategies and programmes which are intended to transform the economy of Antigua and Barbuda were very impressive. Many further stated that such interventions should help to engender confidence in Antigua and Barbuda and also to encourage support for investment initiatives undertaken by the Government.

During the question and answer session, Cort  reiterated the Government’s commitment to ensuring the timely and consistent payment of its obligations. In particular, Dr. Cort assured the participants that mechanisms had already been put in place to facilitate payment upon maturity of the securities. In an interview at the Hilton Trinidad last week, Cort said his visit to TT and other Caricom nations was more than to promote the T-bills and bond initiative. He said Antigua and Barbuda’s economy is projected to achieve 13 percent growth this year, and predicted a  further strengthening of the fiscal balances.

He noted though  that there are lots of opportunities for regional business people to make “good quality investments.” Cort added that his government is willing to offer special incentives for TT manufacturers to invest in that country. TT Manufacturers Association (TTMA) president Paul Quesnel described Cort’s statement as music to the ears of local manufacturers. Stating that Antigua and Barbuda is one of several important regional markets for local business people, Quesnel said the special incentives which Cort referred to would include things such as tax holidays and lower industrial rates.

Asked what type of goods and services does TT currently provide the Antigua and Barbuda market with, Quesnel said nearly all goods manufactured in TT have been able to find a niche for themselves in that market. Tourism is the main driver of Antigua and Barbuda economy, with more than one-third of those tourists coming from the US. The country’s agricultural sector is domestic oriented while its manufacturing sector is small with its major export products being bedding, handicrafts and electronic components. The services sector employs nearly 82 percent of Antigua and Barbuda’s workforce.

Quesnel stated that it was the tourism sector where TT business persons could find the most lucrative opportunities. Last week, the island saw an unusually high number of cruise ship visitors,  as seven vessels docked at the Heritage Quay, Redcliffe Quay and Deep Water Harbour ports. The seven ships, Oceana, Infinity, Golden Princess, Lirica, Club Med II, Regatta and Lili Marleeen, have a combined capacity of more than 10,000 passengers and crew. President of the Cruise Association Nathan Dundas said this was an unusually large number of cruise vessels to dock in St. John’s at one time and this was the third time this season that Antigua has hit this mark. Arguing that investments in T-bills and bonds surpassed the mere placement of monies in savings or low-interest paying accounts, Cort said several of this nation’s leading financial institutions — RBTT, Sagicor and Citibank — are interested in the offer placed on the table by Antigua and Barbuda.