By NEIL HARTNELL
and NATARIO McKENZIE
Tribune Business Staff
A Nassau cruise port bidder yesterday said it its targeting “the biggest offering in Bahamian history” by giving 20,000 locals a chance to own a piece of its $250m project.
Global Ports Holding, the UK-listed operator that is leading one of the three offers submitted to the Government, affirmed its plan to provide a $10m interest free loan to small Bahamian retail investors to enable them to acquire shares in an investment fund that will have equity ownership of 49 percent of the project.
Colin Murphy, Global Ports Holding head of business development for the Americas, said: “Our goal is not to be ten businessmen. We want 20,000 Bahamians.
“To make it easy for the small guy to participate in this, not the wealthy, we’ve dedicated $10m which will be used to provide interest-free loans. It’s not just a small select few. We want it to be the biggest offering in The Bahamas’ history in terms of spread.”
He added: “My chairman is determined this puts as many shares as possible in the hands of small investors. We can lend people money to purchase these shares. They get a stake in the port without putting up any money at all.
“Hopefully we will get paid back in dividends. We’re fully committed to it. We want taxi drivers, vendors, everybody to have a piece.”
Those 20,000 Bahamians, if Global Ports Holding’s bid proves successful and it attracts such local investment, will hold shares in The Bahamas Investment Fund. That Fund, set up by CFAL (the former Colina Financial Advisors) and billed as the “first fund ever targeting infrastructure investments”, will in turn hold a 49 percent equity stake in the Nassau cruise port and its redevelopment.
Global Ports Holding will hold a matching 49 percent equity stake, while the YES Foundation - a foundation created to make charitable donations to youth, education and sports, provide annual grants and assist small businesses and entrepreneurs - will hold the remaining two percent. It will be capitalised with an initial $3m injection from Global Ports Holding.
This structure, significantly, means that neither of Global Ports Holding’s two Bahamian partners - CFAL and BISX-listed Arawak Port Development Company (APD) will have an equity stake in the Nassau cruise port project.
APD, which likely holds the current record for most widely-disbursed share offering with its 11,000 investors, will play an advisory role, offer maritime expertise, and provide “non-executive operations and facility support”. It will also explore, in conjunction with its New Fortress Energy partner, the possibility of offering liquefied natural gas (LNG) bunkering services to the cruise ships.
Mr Murphy confirmed: “Global Ports Holding will own 49 percent of the equity in the project. Another 49 percent will be owned by an entity called the Bahamas Investment Fund. This was created in response to conversations we have had that informed us that people want to have a little bit of ownership in this thing. They want to feel like they are a part of this opportunity.
“We are designing a fund that will own 49 percent of the shares in the port. We are keen towards ensuring that local people can buy into this fund. There is a minimum subscription of $1,000, so we are going to be providing interest free loans of up to $10m for local people to get a stake in the port.”
Mr Murphy reaffirmed: “Our target is to get 20,000 Bahamian shareholders, so it’s not six guys or ten guys or 50 guys; we want 20,000. We want everyone to take stake a stake in this project. We’re not doing this because we need the money, but we understand that we are tenants and we have to do this in partnership with The Bahamas.
“The other two percent will be owned by a foundation we are going to be setting up called the Yes Foundation, which stands for youth, education and sports. Two percent of the dividends from the port will go into this foundation and be used to support causes good for youth, education and sports. We will kick that off with a $3m grant.”
Mr Murphy said Global Ports Holding’s financial commitment to Bahamian stakeholders, inclusive of the $10m Bahamas Investment Fund loan and $3m to the YES foundation, is $28m.
“Our financial commitment to local stakeholders is $28m. That comprises of $5m in micro-loans to small business to help them expand and improve. There is $10m we are going to lend, interest free to enable people to invest in the Bahamas Investment Fund,” he added.
“We’re also working with the Downtown Nassau Partnership on some ways we can support some of the things they are doing. There is the $3m for the Yes Foundation. We are working with the skills development programme in partnership with the Small Business Development Centre to see how we can help them do better. We are advocating $2m to supporting local artisans and farmers through the Bahamas Agricultural and Industrial Corporation (BAIC). We want to be a great corporate citizen. We don’t just want to come in here and run the business. We want to be a part of the community.”
Mr Murphy said Global Ports Holding would work “in harmony” with the Downtown Nassau Partnership (DNP) to help finance improvements to Bay Street and surrounding roads, and upgrade lighting and benches to make the area “a more attractive place where people want to linger” and spend money.
He added that the port operator will also offer training initiatives to help small retailers and other businesses in areas such as product placement and merchandising, and also assist merchants not part of the cruise ships’ own marketing programmes.
Comments
Use the comment form below to begin a discussion about this content.
Sign in to comment
Or login with:
OpenID