CITI ARRANGES BILLION DOLLAR BOND ISSUE FOR GUARDIAN HOLDINGS LTD.
Citi announced that it acted as Sole Arranger in a historic corporate bond issuance by Guardian Holdings Limited (GHL) for TT$1 Billion.
This landmark capital markets transaction, representing both the largest local currency issue and the longest tenor made available to a private sector entity in Trinidad and Tobago, is a testament to the growing maturity of the local market for long-term funds and the confidence that investors place in GHL as an issuer.
In June 2010, A.M. Best affirmed the Financial Strength Rating of two of GHL’s flagship companies, Guardian Life of the Caribbean Limited and Guardian General Insurance Limited, as A- (excellent).
GHL intends to use the proceeds from the issue and sale of the Bonds for the purpose of optimizing its capital structure by re-profiling existing debt.
Dennis Evans, Managing Director of Citibank (Trinidad & Tobago) Limited and its regional franchise, stated “Citi is pleased to continue our tradition of being an important strategic partner to Guardian Holdings Limited.”
Notably, this transaction represents the third time that Citi has successfully taken GHL to the capital markets. This strong track record is a combination of the strength and depth of the local capital market, the leadership position of GHL, the strong response by the investor base and Citi’s commitment to finding innovative solutions for our clients.
Group CEO of Guardian Holdings Limited, Jeffrey Mack, expressed his high level of satisfaction with the transaction. “With the current low interest rate environment, GHL felt that the timing of this debt re-profiling solution from Citi was excellent. This debt will form a core part of our capital structure, will improve the Group’s cash flow and lower our overall cost of capital.”