Jamaica Energy Partners, Sagicor close J$17 billion refinancing deal
Aerial photo of Jamaica Energy Partners.
Jamaica Energy Partners (JEP), Jamaica’s largest Independent Power Provider (IPP), on Monday announced the successful closing of a J$17 billion seven-year syndicated loan.
The company said the loan is part of its refinancing process to utilise assets for the growth, and expansion of CACAO JEP Limited, the principal shareholder for Jamaica Energy Partners Limited and West Kingston Power Partners (WKPP).
Sagicor Bank Jamaica Limited (SBJL) served as lead arranger for J$11.6 billion of the J$17 billion in syndicated loans, while Sagicor Investment Jamaica Limited (SIJL) acted as Lead Arranger for J$5.4 billion in bonds.
“This experience has been an enlightening one. As a patriot, I feel proud to know that this company managed and operated by locals is now being financed by Jamaican banks," Wayne McKenzie, President & CEO of Jamaica Energy Partners, said.
"I feel particularly proud that the process to transact business in Jamaica has improved tremendously. Consents from the Ministry of Finance and the Office of the Prime Minister were executed smoothly, and at no time frustrated the process," he continued. "But more importantly, the work implemented by the team in structuring this transaction, the efforts by our banking partners Sagicor and its syndicated partners has resulted in providing financing solution cheaper than any negotiated in the energy sector. Pursuant to the credit agreement, with lower interest rates and a tenor as long as multi-laterals, Jamaicans can look forward to lower energy costs from Jamaica Energy Partners.”
Sagicor touted the transaction ias being a testament to its capability to raise a considerable amount of funds in a relatively short time. An unprecedented feat in financial sector, the refinancing exercise was completed in less than 30 days, the financial institution said.
Michael Willacy, Vice President, Retail, SME, Corporate and Commercial Banking of SBJL, commented, “We are pleased to announce this transaction, in which we have seen participation from new lenders, allowing us the ability to strengthen our ties with partners locally and regionally. This further demonstrates SBJL’s dominant position in the local corporate banking landscape.”
He went further to add, “It is in the spirit of team work that we would like to thank all participants for their valued commitment to one of the largest syndicated transactions of 2017 which indicates the strength and competences of local and regional financial market”.
As part of JEP’s mandate to stimulate growth and encourage national development, the primary objective of the transaction is to provide cheaper electricity rates for Jamaicans, the IPP said.