By Ravin Singh
The Jamaican-based National Commercial Bank (NCB) could soon open its doors in Guyana if business prospects remain attractive.
“We are looking at Guyana, but clearly we have to see the opportunity and understand it,” NCB Financial Group (NCBFG) President and Chief Executive Officer (CEO) Patrick Hylton said on Friday in New Kingston, Jamaica.
He was at the time responding to questions during the Group’s annual general meeting.
NCB’s primary interest in Guyana, should it make its entry, is financing oil development in the country.
“We are aware of the developments there, based on the oil finds with Exxon, and so on. We see what is happening in the economy and the projections. So, it is a country we are looking at with keen interest,” he added.
NCB recently announced that it had sealed a US$ loan to Nabi/KCL Oilfield Construction Services Guyana to partially finance the construction of a “major, new landmark facility” on the East Coast of Demerara. The project is likely the new headquarters of ExxonMobil in Guyana.
In the advertisement, NCB said that it signed off on the loan to the joint venture through its investment banking and asset and wealth management division, NCB Capital Markets.
“This is a tangible demonstration of the NCB Financial Group’s extended geographical capabilities. We are pleased to see our regional aspirations bring value to Guyana, our clients and the NCB Group,” said Steve Gooden, Chairman of NCB Global Finance Limited stated.
Under the ExxonMobil license, which takes up the giant Stabroek Block, Guyana made its first shipment of crude out of the country last month. ExxonMobil recently upgraded its estimate to eight billion barrels of oil.
NCB is the second foreign bank, within the last month to express interest in entering the Guyana market.
Just a few weeks ago, representatives from the USA-based Citibank were on an exploratory visit to Guyana, and expressed interest in establishing a presence in the oil-exporting economy.
Reports emerging from the Jamaica Gleaner suggest that the Jamaican Bank is currently liaising with ExxonMobil’s subsidiary Esso Exploration and other partners in the country. Shareholders were informed, however, that these plans are still in the preliminary stages.
“The opportunity was uncovered by our investment banking unit NCB Capital Markets, but the details of the financing will be determined in the future. So that is not yet finalised,” said the Group’s Chief Financial Officer and Deputy CEO Dennis Cohen.
He confirmed that the bank was indeed exploring the environment and developing relationships with key contacts.
“As part of that process, the opportunity arose, but as to the specific structure of the deal, that will have to be finalized,” Cohen explained.
According to the Gleaner, NCBFG reported record annual profits of $30.7B billion at year ending September 2019.
