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Financial News

Aug 2014 Financial News

First Citizens Bank’s successful TT$500 million bond issue and nine month performance

Aug 19, 2014

First Citizens has successfully issued a TT$500 million bond and generated an increase in its profits for nine months to June 2014.

The bonds are divided into two categories, a 7 year $400 million issue at 3.10% and a 10 year $100 million bond at 3.25% interest rate. “The issue represents the lowest  interest rate achieved on any bond issue completed by First Citizens,” says Group CEO of First Citizens, Larry Nath.

The bonds were arranged by First Citizens Investment Services on behalf of the Bank. Funds from the bond issue will go towards partially retiring $1 billion in bonds previously issued by First Citizens.

“The attractive fixed 7 & 10 year interest rates would allow the bank to offer competitive fixed rate loan products for First Citizens customers,” says Nath.

“First Citizens continues to be appreciative of the faith of the investing public in the products brought to the market by the Bank,” states Group CEO Nath. This confidence is a result “of the skill and commitment of the Bank’s staff, management and the board of directors to continue driving the Group towards enhanced profitability and long-term growth within our risk management framework,” says the CEO.

For the first nine months of the Bank’s financial year, June 2014, First Citizens recorded an after tax profit of $477.6 million, a $13.5 million increase over the corresponding period of last year. “The Group’s 9 month performance was particularly noteworthy in light of current market conditions which continue to be marked by high liquidity, reduced credit demand and low interest rates,” states Chairman of First Citizens, Anthony Smart.

The chairman says the directors and management of the Bank remain confident of “sustained growth and profitability for fiscal 2014.” Smart’s confident prediction is based on “the Group’s continuing focus on risk management and operational efficiency in addition to the early signs of economic recovery.”

 

Source:
The Trinidad and Tobago Stock Exchange Limited
Tuesday August 19, 2014