Trinidad Finance Minister: Republic Bank, Angostura shares not for sale

Finance Minister Colm Imbert
Finance Minister Colm Imbert

(Trinidad Guardian) Minister of Finance Colm Imbert says the Government has already monetised its shareholding in Republic Financial Holdings Limited (RFHL) and Angostura Holdings Limited (AHL) to provide funding to Government through the issue of National Investment Fund (NIF) Bonds.

Responding yesterday to a Sunday Guardian article which detailed recommendations from the committee appointed by Prime Minister Dr Keith Rowley to chart a road to recovery post-COVID-19, Imbert explained that if the NIF were unravelled at this time, the Government’s liability to bondholders would be significantly more than the $4 billion received for the sale of NIF bonds.

He added it would also affect the credibility of the NIF bond, which would also be damaged, as will the value of RFHL and AHL shares since these are publicly listed companies.

The Sunday Guardian story noted that the Prime Minister’s committee would recommend the sale of Clico Assets to raise money for Government for both budgetary support and to reduce the need to borrow.

The Clico assets include the Republic Bank and Angostura assets but are not limited to them because the company has significant interest in real estate in Trinidad and Tobago through Home Construction Limited. It has significant shares in a methanol plant in the Middle East and interest in manufacturing and insurance, all of which Government can sell as part of the Clico assets in keeping with the committee’s recommendation.

Imbert, who is not part of the committee and therefore not among those making recommendations to Government, listed several reminders to the public about Clico assets.

1. The National Investment Fund Holding Company Limited (NIF) was incorporated on May 29, 2018 by the Corporation Sole for the purpose of holding and monetising assets transferred by GORTT in repayment of the debt owed to GORTT by Clico and CIB, in order to issue attractively priced NIF Bonds to the general public, in furtherance of the Government’s policy of the widest possible public participation in the Assets recovered from Clico and CIB, and for these Assets to be held in Trust for the benefit of future generations.

2. On July 9, 2018 the Corporation Sole transferred to NIF the following shares recovered by Government from Clico and CIB: (a) 42,475,362 shares of Republic Bank Financial Holdings Limited (RFHL); (b) 15,285,917 shares of One Caribbean Media Limited (OCM); (c) 61,677,011 shares of Angostura Holdings Limited (AHL); (d) 4,548,712 shares of West Indian Tobacco Company Limited (WITCO (e) 189,400,000 shares of Trinidad Generation Unlimited (TGU).

3. Subsequently NIF issued $4.0 billion in bonds utilizing the shares transferred by the Corporation Sole as security, with the proceeds of the bonds transferred to the Government as part repayment for the shares transferred.

4. Under the terms of the Trust Deed, NIF’s shares in RFHL and AHL are being held as security by the Trustee until 2038. Additionally, dividends received from RFHL and AHL are being utilized by NIF to pay the semi-annual coupon payments to over 7,000 bondholders with any extra dividends transferred to a sinking fund to meet the principal repayment of the three series of the bonds as they mature in 2023, 2030 and 2038.

5. The Government has therefore already monetised its shareholding in RFHL and AHL to provide funding to GORTT through the issue of NIF Bonds.

The Finance Minister has also assured holders of NIF Bonds that their long-term investment is secure and that they will receive their interest payments on time and in the amounts agreed to.