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Government Guarantees BEL’s Loan Agreement with CDB Print E-mail
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Written by Shane D. Williams   
Thursday, 19 June 2014 00:00

The Caribbean Development Bank has agreed to lend the Belize Electricity Limited US$11,231,000. BEL plans to use the credit to upgrade and expand its sub-transmission and distribution systems across the country in order to improve the reliability of the company’s power supply to customers.

The loan will be repaid in 48 equal and consecutive quarterly installments. The first payment will be due three years after the agreement date. The interest rate is set at 4.1 percent per annum on the outstanding portion of the loan. In order for BEL to enter into the loan agreement with the Caribbean Development Bank, the loan must be guaranteed by the Government of Belize.

At the House of Representatives on Friday, June 13, the Prime Minister of Belize, Hon. Dean Barrow, moved the Caribbean Development Bank Sixth Power Project – Belize Electricity Limited Loan Guarantee Motion, 2014. The motion features the terms and conditions of the loan agreement and request that the House approves and confirms Government’s Guarantee Agreement with the Caribbean Development Bank.

Prime Minister Barrow referred to the interest shown in BEL’s most recent debenture offering to assure the House that BEL will be able to repay the loan. The company’s most recent debenture series of $25 million was completely subscribed a full 32 days before the closing date. This signifies investors’ confidence in the viability of the company.