full story - Caribbean Cement Company Limited

IFC Supports Expansion and Modernization of Cement Group in the Caribbean
Kingston, Jamaica, July 22, 2005.- The International Finance Corporation, the private
sector arm of the World Bank Group, facilitated Trinidad Cement Limited (TCL) in
structuring and arranging a US$105 million equivalent financing package that will help
TCL expand and modernize its Jamaican subsidiary, Carib Cement, while reducing
carbon emissions and improving environmental standards. The TCL Group is the
dominant supplier and only integrated cement producer in the English-speaking
Caribbean.
Today IFC signed an agreement with TCL to
provide US$35 million in senior and
subordinated loans. In addition, IFC helped
TCL raise financing totaling US$70 million
equivalent from regional banks, which
includes a US$20 million loan and a US$50
million equivalent bond issue in Trinidad and
Tobago dollars. Republic Finance and
Merchant Bank Ltd in Trinidad are
undertaking both the local loan and the bond
issue.
Brian Young, Chairman of Carib Cement, said, “Using its considerable global
experience, knowledge of the cement industry, and expertise in sustainability, IFC is
supporting Carib Cement’s long-term plans and investment program, which will
significantly improve efficiency and lower costs.” He added, “We value IFC’s
commitment as a long-term partner and are pleased that it responded to our tight schedule
for funding in a very prompt and efficient manner.”
The TCL Group is currently strengthening the cement sector of its business by expanding
capacity and optimizing its plants. The company is establishing cement terminals
regionally, thus geographically diversifying its concrete operations. It is also introducing
new products, such as Carib Cement Plus in Jamaica
Kirk Ifill, IFC’s Caribbean Regional
Manager based in Trinidad and Tobago,
noted, “This is an excellent example of how
IFC provides value added services to
companies, in addition to capital. It is a
landmark investment for Jamaica, as IFC is
leveraging TCL’s regional presence to help
Carib Cement access financing in Trinidad
and Tobago at longer tenures and better
terms. The company would otherwise be

constrained by Jamaica’s sovereign ceiling for long-term debt.” He added, “The
investment launches an important partnership with the TCL Group in a high-impact
segment of the Jamaican economy.”
IFC’s investment will help improve the local availability of cement and will promote
investment in infrastructure, industry, and the housing sector. Carib Cement’s
modernization of the plant will improve its environmental performance, including
significant reducing its emissions of carbon dioxide, a greenhouse gas that contributes to
global warming and climate change. This reduction should make the operation eligible
for carbon credits under the IFC-Netherlands Carbon Facility – a first for Carib Cement
and for IFC in the Caribbean.
In the Caribbean, IFC is the leader in providing long-term financial instruments and
sustainability products to help companies grow and compete in the global economy. In
the last five years, IFC's Caribbean portfolio has tripled from $173 million in FY01 to
$541 million today. The major sectors of IFC's portfolio in the Caribbean are finance and
insurance ($130 million), utilities ($112 million), transportation ($95 million),
manufacturing ($63 million), tourism ($46 million), and telecommunications ($45
million).
The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in
developing countries, helping to reduce poverty and improve people’s lives. IFC finances
private sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability, and
provides technical assistance and advice to governments and businesses. From its
founding in 1956 through FY04, IFC has committed more than $44 billion of its own
funds and arranged $23 billion in syndications for 3,143 companies in 140 developing
countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own
account and $5.5 billion held for participants in loan syndications.
A major objective of the TCL Group’s expansion plan is to satisfy a regional market that
continues to be very buoyant, as construction activity remains very strong. The Group is
positioning itself to satisfy its markets and to take advantage of opportunities for
additional exports. The outcome of the capacity expansion will be a lower cost of
production per ton of cement, which will increase the company’s competitiveness.