The Trinidad Guardian is reporting that the Michael Lee Chin led, NCB Financial Group has agreed to pledge all the shares of its subsidiary Guardian Holdings as collateral for its upcoming US$300 million bond offer.
This move, a first in Caribbean corporate history, exposes Guardian Holdings to significant risks if the NCB Financial Group fails to meet its debt obligations - US$250 million of which matures this year.
The NCB Financial Group owns 61.77% of the ordinary shares of Guardian Holdings.
NCBFG floated an unsecured bond to finance the maturing debt, which should have been closed in June but the offer was not priced and taken up.
The Group told the T&T Stock Exchange that it will now be issuing a senior secured bond backed by its share holding in Guardian Holdings, adding that it expects the offer to be priced and closed shortly.
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