The Turks and Caicos (TCI) Government yesterday, Wednesday, 13 January 2016, signed a new $28m loan agreement with the Royal Bank of Canada. The balance of the $170m UK guaranteed bond will be repaid from the sinking fund and other TCI Government cash resources. The $170m bond is due to be repaid on 22 February 2016.
RBC Royal Bank provided the most competitive proposal following the Government’s Request for Financing Proposals in September 2015. The terms of the new loan are very attractive with interest at just 1.2% over Libor. It will be repaid in quarterly installments with the final payment being due in 2019, although the Government may also repay the loan early without penalty. It was not necessary to request a loan guarantee from the UK.
"The TCI economy has seen a major turnaround over the past three years and, with its BBB+ credit rating, 4.3% GDP growth and consecutive budget surpluses, this will allow the Government to retire its $170M UK guaranteed debt. This is a major accomplishment for this Government and all involved, and now we can invest in the socioeconomic development of our people and country to a greater magnitude and pace. This is indeed a proud moment for the Turks and Caicos Islands", said Premier Dr Rufus Ewing.
“This is the final piece of the jigsaw in the refinancing of our UK guaranteed debt taken out in 2011. The competitive terms achieved are a testament to the progress we’ve made. We are grateful to RBC Royal Bank for their commitment to TCI at this important stage in our recovery and we look forward to working with the Bank as we build on this platform”, said Minister of Finance, Washington Misick.
“RBC is extremely proud to partner with The Turks and Caicos Islands Government with respect to this historic transaction and we look forward to exploring future opportunities,” said Brian Knowles, Vice President Corporate Banking, RBC Royal Bank.
Governor Peter Beckingham also welcomed the agreement with RBC Royal Bank saying: “The signature of this agreement is a milestone for TCI. Repayment of the $170m bond will mark the end of the loan guarantee provided by the UK Government when TCI's finances were in poor shape, and another step on the country's move to a strong and resilient economy. I would like to pay tribute to everyone in Government, the House of Assembly, the public service and the private sector who have contributed to this achievement, as well a range of special advisers and the Chief Financial Officer from the UK. As the London Times are planning to bill in a special report on TCI next month, it is a major economic turnaround of which the whole country should be proud".
About RBC in the Caribbean
With more than 100 years of heritage serving the region, RBC operates under the banner of RBC and RBTT with a presence in 20 countries, 122 combined branches and close to 6,600 employees serving more than one million clients. As one of the Caribbean’s leading diversified financial services companies, RBC provides personal and commercial banking, wealth management, corporate and investment banking, insurance and trust and asset management services to a wide range of clients, including individuals, small businesses, general commercial entities, regional and multi-national corporations and governments. For more information, please visit rbc.com/caribbean
About RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. We are Canada’s largest bank as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. We are one of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and investor services on a global basis. We employ approximately 80,000 full- and part-time employees who serve more than 15 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 51 other countries. For more information, please visit rbc.com