NCB Capital Markets Limited (NCBCM), in its push to boost economic recovery, said it has over the last two weeks arranged over $6 billion in financing aimed at supporting an expansion of the local energy sector.

The regional brokerage house, which said it was bullish about driving growth in the energy sector despite continued economic challenges, recently structured bonds for Wigton Windfarm Limited and Future Energy Source Company Limited (Fesco), raising $5.8 billion and $1 billion in capital, respectively.

“With the levels of uncertainty existing in the global markets, coupled with the emergence from COVID-induced challenges, it is critical that adequate financial support be provided to businesses to support their recovery efforts,” said Tracy-Ann Spence, chief operating officer, NCBCM, in a company release.

Wigton, a renewable energy provider, supplies wind-generated electricity to the national grid, while Fesco, a marketer and distributer of petroleum products, operates across some 13 dealer-owned and/or company-owned service stations across the island.

“Our financing support to Fesco will facilitate the expansion of their business inclusive of their entry into the consumer cooking gas/LPG market, while Wigton’s debt was restated and will see the company paying interest rates that are more reflective of its risk profile while lowering its borrowing costs,” added Nicholas Dawson, manager of origination and structuring at NCBCM.

Fesco’s management recently indicated that it would be targeting a date next year to enter the liquid petroleum gas (LPG) market, especially as the company diversifies its product offerings beyond its petrol station and convenience store operations.

Managing director of Wigton Earl Barrett, commenting on the bond issue for his company, said it was well timed and comes at a critical time along the company’s growth journey.

The bond for the company, arranged in two tranches, seeks to raise up to $3.9 billion in tranche one, expected to expire in 2026, and $1.9 billion in tranche two after maturity in five years with an expiry date in 2027. The proceeds from the issue are to restate existing debt and comes at a time when the company is also seeking to improve financial performance amid declining revenues and increasing costs.

“We are particularly grateful for the confidence that the NCBCM team has placed in our operations expressed through the refinancing of this bond offer. Our business forms part of the future of energy in the local economy especially in light of the volatility of traditional energy sources on the global scale,” Barrett stated.

The brokerage firm in further pointing to the Government’s push behind the energy sector and amid all the latest developments in the market concerning renewable energies and the introduction of electric vehicles, touted it as a sector earmarked for significant growth.

“Our support of both Wigton and Fesco represents a significant investment in the energy sector, one which we believe is critical to the long-term development of the Jamaican economy. They also are an indication of a healthy pipeline of projects that we are currently negotiating, which are expected to further mobilise the capital markets across key industries,” commented Sekou Crawford, NCBCM’s head of investment banking.