A strategic partnership between Scotiabank T&T Limited and Trinidad Generation Unlimited (TGU) has resulted in a successful bond offering which has raised US$600 million in the international capital markets. The money will be used to liquidate debts incurred in construction of the La Brea power plant.
The bank facilitated the bond offering working alongside Credit Suisse, RBC Capital Markets and CIBC Capital Markets. The bond will reach final maturity in November 2027 and is amortised with six equal semi-annual instalments due leading to maturity.
"This transaction is an affirmation of the breadth and strength of Scotiabank's international footprint to expand the range of financing solutions available to our clients," said senior vice president and head, Caribbean East and South, Anya Schnoor.
Ahead of the transaction, TGU obtained a BBB rating from S&P and a BBB- rating from Fitch, in which Scotiabank acted as rating agency advisor.
Investor confidence was so high the bond was oversubscribed by four times and peaked at approximately US$2.4 billion.
The TGU business model saves millions of dollars in overall operating costs but particularly in fuel costs. By using less fuel for greater power output the plant has a smaller carbon footprint when compared to simple gas turbine plants. This is part of TGU's ten-year strategy to bring power production in T&T up to international standards of efficiency, cost and sustainability.
TGU operates a 720 MW capacity combined-cycle power plant and is the largest single supplier of electrical energy in T&T–some 45 per cent of the country's average energy demand.
