We also asked CEO Palma about SSB's 82 million dollar investment in Hydro Belize. That's a combination of an equity investment and a bond purchase. He explained the wisdom behind it:
Jerome Palma, CEO - SSB
"For us, we recognize in the offering where we could have gotten 30%, we should have secured two board seats. When Hydro did their analysis from the feedback on the subscription, they also came back to us and said, well, you know what: this is where we're at; this is full subscription for us to get to that 30%; have the commitment in terms of two board seats, so we can have adequate representation and for us to participate fully. Additionally, they came and said, you know, we have a bond placement with the intention of buying back the outstanding shares that were not then put for public. We looked at it favorably, it was going to give 6% return over 20 years. It puts us in a more efficient position where we increase our ownership up to that 30% without taking on additional shares, without taking on additional expenses in equity. So it puts us where we've invested about 41 million, more or less in equity and about 42.5 million in debt."
"The debt after 20 years will be repaid to the scheme, which we can then reinvest and put to work elsewhere. It gives us 6% in terms of the bond investment and from the equity position, we expect 10% or more return just in terms of dividends."
"And then ownership direction. In a generation. Where can we now support the development of energy that can help our country to become more independent in that way?"
"So it puts us in a very good position overall in terms of making that investment."
