Sygnus Capital Limited—a subsidiary under the Sygnus Group—acted as lead arranger of a private-public partnership with the Bahamian Government and PPP Investment and Construction Company Limited (PPPICCL), to successfully raise US$9 million by way of alternative financing, for the rebuild and restoration of the new Eight Mile Rock West End government complex based in The Bahamas.
Simplified Lending, based in The Bahamas, acted as the financial advisor for the deal through its commercial loan brokering division. The project, which has a revised budget of US$31.1 million, was funded through a combination of equity, subordinated notes from Sygnus Credit Investments and Senior Debt (bond and construction loan).
“We at Sygnus are very pleased to have partnered with PPP Investment and Construction Company Limited and the Bahamian Government on this private-public partnership project which will deliver a state of the art multipurpose government services building on the island of Grand Bahama,” stated Gregory Samuels, Senior Vice President & Head of Investment Banking at Sygnus.
This facility was carefully structured to meet the requirements of all the stakeholders in the partnership including the senior lender and the other subordinated investor so that the project is able to hit its projected timelines for completion and delivery. In addition, this facility further demonstrates our strength as the regional leader in Alternative Investments and we look forward to working with other governments across the region on projects of this nature as we continue to increase our footprint in the English, Spanish and Dutch Caribbean,” Samuels added.
The West End complex, stalled by the most devastating hurricane in Grand Bahama’s history followed by the fallout from the worst pandemic in more than a century, includes two large buildings that will house all government services.
It will also include offices and facilities for the courts, Royal Bahamas Police Force, Immigration, Customs, National Insurance Board, passport office, social services, driver’s license and registration, and other government departments.
Minister Ginger Moxley, the Member of Parliament for Pine Ridge in West Grand Bahama applauded the teams at Sygnus and Simplified Lending for their significant role in this project.
“The construction, outfitting and opening of this complex will jumpstart the economy of West Grand Bahama and give the people a new beginning,” she said. “This project could not have come back to life so quickly had it not been for the two companies that joined forces to provide flexible funding,” said Minister Moxey.
“I want to commend Simplified Lending, our own Bahamian private financial institution and alternative funding firm, and Jamaica-based Sygnus, one of the Caribbean’s leading alternative investment companies, for believing in The Bahamas and especially in this key project in West Grand Bahama,” Moxey contended further.
The government complex is slated for a third-quarter 2022 completion date. Site preparation, infrastructure and construction is expected to generate up to 100 jobs.
“Sygnus has always been about long term partnership, relationships and creative financing solutions. As a result, we are delighted to expand our relationship with Simplified Lending and The Bahamas Government by participating in a project that is so critical to the Bahamian economy on Grand Bahama, an island that suffered a double whammy with Hurricane Dorian and COVID-19,” said Sygnus President and CEO Berisford Grey.
“From the time we opened our doors in 2016, we wanted to break the mould of traditional financing solutions by using financing structures much more customized and aligned to the needs of a project or a client, and in this case, the solution we were able to provide de-risks the project and allows for local and/or more traditional funding to step in when construction is complete.”