IDB Invest grants US$150m to Massy Group

IN the largest private sector investment ever made by IDB Invest, a US$150 million financing package has been granted to Massy Group to support trade, food security and sustainable growth.

The financing package includes a US$90 million long-term loan to upgrade Massy’s capital expenditure.

IDB Invest and Massy Group announced this strategic partnership at a signing ceremony of the agreement at Hyatt Regency, Port of Spain, on March 17.

IDB said this agreement will support Massy's expansion plans and help modernise its operations in logistics and distribution with an emphasis on automating business operations.

Additionally, a US$60 million trade finance programme will be implemented to enhance intra-regional trade and strengthen Massy’s supply chain platform.

"It’s not just a transaction. I think the innovation and the creativity of what was put together is a very symbolic representation of what this group can do and what this region can do collectively with good partners," said James McLetchie, deputy CEO of Massy Group.

"This partnership positions us, not only for financing incentives. As we want to become a stronger net contributor of US dollars and hard currency…this is the first step with a partner that is well established to help us access capital."

Planning and Development Minister Pennelope Beckles-Robinson said, "TT has been a member of IDB Invest since its inception and the work of the IDB continues to support our government’s commitment to national development strategy Vision 2030."

She thanked IDB Invest for its commitment and increased focus on expanding its presence and impact on the Caribbean.

"Both in terms of financing established companies and also conducting more exploratory work on the ground. Taking more risks, providing support to small and medium enterprises, attracting private investment and creating synergies with the bank’s public sector windows.

"As these initiatives are executed and we begin to see increased private sector investment and expansion, they will lead to significant and sustainable benefits for the people of TT."

She said in TT, the IDB Invest portfolio includes five companies: the Home Mortgage Bank, TT Mortgage Finance Company Ltd and TT Tissues Ltd.

The signing of the partnership with Massy Group will bring the value of the portfolio to US$307 million.

Beckles-Robinson said she looks forward to seeing these numbers grow in the future.

"The benefits of this are numerous and will resound throughout TT and the Caribbean region. They will include increased productivity and engagement with the support of local supply chains across the region. Especially food suppliers in the expansion of storage, warehousing capacity and the modernisation of payment facilities.

"We also expect positive impacts on import financing across Massy’s lines of business, improved and increased market linkages across the Caribbean and increased food security in the region through adaptation to mitigate the effects of climate change on the availability and supply of food."