Fri | Jul 23, 2021

Sagicor Group finances sale, leaseback of New Fortress Energy's Clarendon power plant

Published:Thursday | June 17, 2021 | 9:04 AM
Christopher Zacca, President and Chief Executive Officer of Sagicor Group Jamaica - Kenyon Hemans photo

Sagicor Group Jamaica has announced that it will be structuring a US$285 million sale and leaseback of the combined heat and power plant in Clarendon owned by New Fortress Energy (NFE) Inc.

The transaction, which is subject to regulatory approval, will be the largest corporate financing deal in Jamaica's history.

As anchor investors in the transaction, Sagicor Group Jamaica entities will invest US$100 million in the transaction.

Sagicor Investments Jamaica will act as the lead arranger for the balance of US$185 million from local, regional, and international investors. The transaction is being conducted in partnership with NFE South Power Holdings Limited, a subsidiary of New Fortress Energy Inc.

President and CEO, Sagicor Group Jamaica, Christopher Zacca, said “Sagicor is excited to partner with the NFE team in this nationally strategic asset.”

“This transaction is in keeping with Sagicor's strategic focus in ensuring that we make a positive impact in whatever we do. Not only is this deal a vote of confidence in the Jamaican financial sector, it is indeed a vote of confidence by NFE in Jamaica.  We look forward to investing in, and, providing this excellent long-term asset to the investment community,” Zacca said.

According to Wes Edens, Chairman and CEO of NFE, “This partnership further strengthens our long-term commitment to Jamaica. We appreciate the support of Sagicor and the Jamaican investment community and look forward to continue investing in Jamaica's sustainable energy transition.”

In addition to the Clarendon-based power facility, NFE has invested in two liquified natural gas terminals, located in Montego Bay, St James and Old Harbour, St. Catherine, and supports many local industrial customers transition from oil-based fuels to cleaner natural gas.

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