FortisTCI Limited and the Turks and Caicos Islands National Insurance Board Close on US$5 Million Bond Agreement

CUSTOMER CARE 649-946-4313
Jun 16, 2016

Providenciales, Turks & Caicos Islands, Thursday, June 16, 2016 – Today, FortisTCI Limited (the Company) and the Turks and Caicos Islands National Insurance Board (NIB) held a joint press conference to announce the closing of a US$5 million bond agreement. The closing consisted of a US$5 million 5.14% Bond Issue 2016/2031, due by July 1, 2031. The net proceeds from the bond issue will be used to finance a portion of the Company’s estimated capital expenditure of approximately $70 million during 2016 and 2017 and will be paid 100% at par value plus accrued interest on redeemed amount.


Negotiations for this bond began in February of this year. It was during this period that members of the FortisTCI Senior Management Team met with the NIB Board of Directors to provide a complete overview of the Company’s operations and for the NIB to conduct its due diligence exercise.


The NIB has a bond portfolio valued at US$40,359,465 (unaudited) at the end of April 2016. Historically, the NIB has always made special provision for local investments in its portfolio which is guided by the Domestic Investment Policy in the Investment Policy Statement. The NIB believes that besides the social impact of investing locally that the TCI being a rapidly growing economy provides an opportunity to earn competitive risk-adjusted returns. Over the years, the NIB has primarily invested with the public sector or with quasi-government entities but has also invested in private entities. While historically this investment is not the largest local investment to date, it is significant in terms of the fact that it affords the people of the Turks & Caicos Islands an avenue to invest in a local reputable and fiscally sound company through their contributions entrusted to the NIB.

 


NIB Chairlady Lillian Misick said, "The Board of Directors believes that this investment with FortisTCI represents the ideal type of local investment that the NIB should be pursuing, considering the underutilization of funds allocated for domestic investment. It also provides the opportunity for the Board to pursue its mandate to grow the fund to meet its future statutory obligations."


FortisTCI President and CEO Eddinton Powell said, “We are pleased to have reached an agreement with the Board of Directors of the Turks and Caicos Islands National Insurance Board. FortisTCI is indeed a strong company and a good investment that the Turks and Caicos Islands can be proud of. I join in celebrating this landmark achievement for FortisTCI, the NIB, and the people of Turks and Caicos Islands. I hope that this bond investment by the NIB in FortisTCI will be the first of many”

 

About FortisTCI:

1) FortisTCI Limited (FTCI) is a wholly owned subsidiary of Fortis Inc., and is the sole provider of electricity in Providenciales, North Caicos, Middle Caicos, South Caicos, East Caicos and adjacent Cays. In August 2012, Turks and Caicos Utility Limited (TCU), which is the sole provider of electricity on the Islands of Grand Turk and Salt Cay, was acquired by FTCI. Together the two companies serve more than 14,000 electricity customers in the Turks & Caicos Islands archipelago. FTCI and TCU have an aggregate diesel-fired generating capacity of approximately 82 megawatts. For additional information, visit www.fortistci.com.

 

About The Turks & Caicos Islands National Insurance Board:

2) The National Insurance Board is a Social Security program established under The National Insurance Ordinance and subsidiary legislation, to establish a system of National Insurance providing for payment in respect of retirement, invalidity, death, sickness, maternity, employment injury and old age; to establish an insurance fund and for connected purposes. For additional information, visit www.tcinib.tc.

 

FortisTCI CONTACT:

Talisha Simons

Manager of Corporate Communications

FortisTCI Ltd
Tel: 649-946-4313 Ext. 2519
Email: tsimons@fortistci.com

NIB CONTACT:

Diandra Mills

Investment Manager

The National Insurance Board
Tel: (649) 941-5806
Email: diandramills@tcinib.tc

 

JOINT PRESS CONFERENCE

Providenciales, Turks & Caicos Islands, Thursday, June 16, 2016

The Turks and Caicos National Insurance Board (NIB) – Speaking Representatives at Press Conference:

  • Mr. Walter Gardiner – NIB CEO
  • Mr. Floyd Seymour – Deputy Chair / Investment Committee Chairman
  • Ms. Diandra Mills - Investment Manager

FortisTCI Limited – Speaking Representatives at Press Conference:

  • Mr. Eddinton Powell – FortisTCI President & CEO
  • Mrs. Ruth Forbes – Vice President of Finance, Human Resources, Information Technology, and CFO
  • Miss Alexandria Missick – Director of Legal Services