TCL signs up for US$105M financing package

It will also help reduce carbon emissions and improve environmental standards. The loan is being facilitated by the International Finance Corporation (IFC), the private sector arm of the World Bank Group. The TCL Group is the dominant supplier and only integrated cement producer in the English-speaking Caribbean.

IFC signed the agreement with TCL to provide US$35 million in senior and subordinated loans, the company said. In addition, the IFC helped TCL raise financing totaling US$70 million equivalent from regional banks, which includes a US$20 million loan and a US$50 million equivalent bond issue in Trinidad and Tobago dollars.

Both the local loan and the bond issue are being undertaken by Republic Finance and Merchant Bank in Trinidad.

Brian Young, chairman of Carib Cement, said by using its considerable global experience, knowledge of the cement industry and expertise, IFC is supporting Carib Cement’s long-term plans and investment programme, "which will significantly improve efficiency and lower costs."

He added, "We value IFC’s commitment as a long-term partner and are pleased that it responded to our tight schedule for funding in a very prompt and efficient manner."

The TCL Group is currently strengthening the cement sector of its business by expanding capacity and optimising its plants. The company is establishing cement terminals regionally, thus geographically diversifying its concrete operations. It is also introducing new products, such as Carib Cement Plus in Jamaica

Kirk Ifill, IFC’s Caribbean regional manager based in Trinidad and Tobago, noted, "This is an excellent example of how IFC provides value added services to companies, in addition to capital.

"It is a landmark investment for Jamaica, as IFC is leveraging TCL’s regional presence to help Carib Cement access financing in Trinidad and Tobago at longer tenors and better terms," he said, noting that the company would be constrained by Jamaica’s sovereign ceiling for long-term debt. He added, "The investment launches an important partnership with the TCL Group in a high-impact segment of the Jamaican economy."

Carib Cement’s modernisation of the plant will improve its environmental performance, including significantly reducing its emissions of carbon dioxide, a greenhouse gas that contributes to global warming and climate change.

This reduction should make the operation eligible for carbon credits under the IFC-Netherlands Carbon Facility — a first for Carib Cement and for IFC in the Caribbean.