STAR Businessweek - 14 October 2017

THE STAR BUSINESSWEEK OCTOBER 14, 2017

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African nations turn to bond markets for finance needs Bitcoin’s staggering rise in value has attracted the attention of institutional investors and policy makers.

Source: FT & Bloomberg

When Ghana became the first west African nation to enter the international bond markets a decade ago, it was part of a flurry of debtraising in the world’s least developed region.

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CAN THE CARIBBEAN BECOME THE NEXT CRYPTOVALLEY?

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BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

n case there was any doubt, September proved it. Less than seven years ago - in 2011 - it was possible to buy a Bitcoin for under $1. At the start of last month, the price for a Bitcoin soared to a record price of $5,000. It has since gone even higher.

Cryptocurrency may sound complex; it may be something in which many investors don’t yet invest. Yet, whatever the case, it’s undoubted: all businesses in the Caribbean need to now consider cryptocurrency as part of their future.

While cryptocurrency is global, just as currencies differ from one nation to another, each region has its own unique approaches to trading. Central to the story of cryptocurrency in the Caribbean for business, is personal use and ownership.

A business needs consumers to have currency, and consumers need to have access to cryptocurrency markets accordingly.

ADVANTAGES

For those yet to feel they’ve a good understanding of cryptocurrency, an overview is useful. Cryptocurrency

is digitally created currency that is traded online, and can increasingly be used for ‘real world’ spending via eCommerce stores, and regular debit cards. Distinct from a traditional investment asset like a stock, a cryptocurrency is a whole asset in and of itself, and affords its owner a greater degree of freedom and independence than a traditional investment.

Because the Caribbean and wider world is fast shifting to a truly digital economy, cryptocurrencies are an attractive prospect for businesses, especially those that seek to be agile and lean, as cryptocurrencies like Bitcoin offer a way for businesses to exchange goods with clients in a simple and straightforward way.

Not only does this have the potential to do away with excess costs such as handling fees and charges but, due to the blockchain peer-to-peer system, it also means that transactions are now processed in moments rather than days.

The advantage of this flexibility and speed is just one element of the many innovations cryptocurrency can deliver.

Continued on page 2

Green bond boom brings growing pains

A €600m bond sold by a Scottish utility would not normally set pulses racing for anyone but the most committed followers of London’s debt market.

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THE STAR BUSINESSWEEK

OCTOBER 14, 2017

“The Future Is Already Here, It’s Just Not Evenly Distributed”

BY CHRISTIAN WAYNE – EDITOR AT LARGE

This quote by famous science fiction writer and futurist William Gibson is just as true today as it was in the 1990s. Notwithstanding the futuristic nature of his work, Gibson’s capacity for prescience was astounding. Among other mainstays of today’s technophilic lexicon, he is responsible for coining the term cyberspace. Released in the early 80s, Gibson’s short stories ‘Burning Chrome’ and ‘Neuromancer’ inspired the small but rapidly growing cyberpunk movement and challenged generations of readers to imagine a world where technology was ubiquitous.

In this issue of The STAR Businessweek we’ll look at a technology that some herald as a more important innovation than the internet itself. What could it mean for business in the Caribbean?

Learn more in our lead story: Can the Caribbean Become the Next Cryptovalley? Starting on page 4, the ECCB is also looking to the future in our interview with Governor Antoine about the Central Bank’s vision for combatting stagnant GDP growth and debt in the region.

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cutting edge digital technology, limited internet access will always inform the ability of local commerce to take advantage of it. With 2016 estimates indicating 18 million (43.7 %) of the region has internet access, growing connectivity on a foundational level will serve as a vital step to taking advantage of the new technology in the region.

The technological capability for cryptocurrency can exist and be ready for use, but if there is extensive restriction placed upon it - or an outright ban - by a Caribbean government, the capacity for it to be used locally is limited. This helps account for the varying approaches being seen to cryptocurrency in the region, and how local governance is impacting its wider adoption.

POLITICAL CONSIDERATIONS

Cryptocurrency is a difficult financial asset to regulate. This is owed to many factors. Its newness is one; the diversity of currencies in the field - from

parts of the world, most prominently between Japan and China. While the complexity of cryptocurrency means specific government policy can alter the landscape at anytime, broadly speaking, Japan has been progressive and welcoming of cryptocurrency’s rise. Conversely, China has been more reticent, having recently banned Initial Coin Offerings (ICOs) and has shown a greater weariness to cryptocurrency overall.

However, greater freedom comes with greater challenges. As cryptocurrencies like Bitcoin are created via a complex technical process known as mining, and then traded over a network known as blockchain, there is no central authority like a federal reserve or treasury. In turn, traders have a greater capacity to remain anonymous compared to traditional assets.

Not only has this made regulation of cryptocurrency a difficult consideration for governments around the world, it has also given rise to concerns surrounding

CONCLUSION

Continued from page 1

So, how does the Caribbean compare to elsewhere when it comes to cryptocurrency adoption?

CHALLENGES

The Caribbean is a unique region globally due to its relatively small population contrasted with the diversity of its governance and economic systems. While just three states (California, Oregon and Washington) on the U.S West Coast hold a total of 50 million people, the Caribbean sees its 43 million residents spread across 28 different territories. The capacity for the region to take advantage of the rise of the cryptocurrency era is informed by its growth on a national level.

This is where businesses can be especially impacted by local politics.

While cryptocurrencies may represent

it serves as a guiding star for other Caribbean start-ups seeking to grow a cryptocurrency business. Yet, if cryptocurrency can serve not only as a commercial opportunity but a public utility, then even traditionally protected economies like Cuba with its dual currencies, can identify opportunities for common sense reform in the digital arena.

This is especially so when contrasted against the historical difficulty of cutting through red tape for electronic payments in the Caribbean. The reasons that are behind a slower take-up of cryptocurrencies regionally become clear, and resolving these issues successfully is surely beyond the power of one start-up or even one nation.

Nonetheless, just as the obstacles identified are substantial, so too is there substantial opportunity for real progress within them. While restrictive governance has limited economic growth in some nations among the Caribbean, the region is also one with a robust history of open and transparent economies.

Bitcoin to Ethereum, Litecoin to Dash, and many more - is another. In turn, even the more limited understanding of the digital currency among government and policy makers has an impact; comparatively few experts in cryptocurrency exist given its young age, especially when compared to regulation of centuries-old investments in shares and property.

What’s more, the different models of governance throughout the Caribbean is also proving impactful. Though nations like Antigua and Barbuda have sought to shift towards regulation of cryptocurrency in various forms, there is yet to be shared consensus regionally about the best methods for regulation.

This tension has been mirrored in other

scams and other crime. Much of these concerns can be owed to the relative newness of the technology (the most prominent cryptocurrency Bitcoin has been trading only seven years) and an absence of proper understanding among the general public.

OPPORTUNITIES

A difficult political climate notwithstanding, there remains the possibility that even regional rulers who maintain strict political and economic controls on their government may find reasons to promote the growth of cryptocurrency.

Undoubtedly a business like Bit operating out of Barbados has benefitted from the free and open economy, and

Cryptocurrency will need to grow in the Caribbean business community alongside other fields in order to succeed. Connectivity remains a vital consideration for the future of cryptocurrency in the Caribbean.

Cryptocurrency can be global but if access to it is restricted on a local level‚ it will make no difference whether an aspiring cryptotrader is in Havana‚ Hokkaido or Hamburg.

Conversely, a small population previously limited the potential for nations like St Kitts and the Virgin Islands to fully seize upon their economic strengths. The shift towards a truly online, digital economy means challenges surrounding local population are now of lesser concern. A local cryptocurrency start-up can generate jobs, tourism and growth in the business sector as a whole.

Ultimately, the future of cryptocurrency in the region will be impacted chiefly by national policy.

An open and deregulated economy will make the creation of local cryptocurrency businesses easier, whereas strict regulation and a culture of suspicion surrounding its rise will disencourage growth.

If these challenges can be addressed, there is the potential for substantial gains. More than many other regions, the Caribbean has a dynamic combination of cultural diversity, proximity to large economies, and economy transparency that all serve to make it a promising arena for cryptocurrency growth in the future.

THE STAR BUSINESSWEEK

AFRICAN NATIONS TURN TO BOND MARKETS FOR FINANCE NEEDS

BY FT CORRESPONDENT

When Ghana became the first west African nation to enter the international bond markets a decade ago, it was part of a flurry of debt-raising in the world’s least developed region.

Now the bills are coming due, with nearly $25bn of sovereign debt set to mature in the region next year according to an FT analysis of Thomson Reuters data.

Investors’ rush into emerging market debt since the start of this year should be a boon for African finance ministers seeking to refinance — sub-Saharan country debt with a total return of 10.9 per cent has outperformed the EM average of 9.1 per cent so far this year, according to Bloomberg data.

But the big question for investors and finance ministers is whether the current bullish market conditions will hold for the coming wave of new debt sales.

Since the start of this year subSaharan African debt has “put in a stellar performance”, says Sergey Dergachev, senior portfolio manager at Union

Investments. “The question is whether this [rush for yield] is fundamentally justified.”

A cause for concern is that the region’s economy is still fragile, feeling the repercussions of the mid-decade slump in oil and commodity prices. Beyond the striking price performance in regional bonds so far this year, concerns over high debt levels and credit risk resonate.

Credit rating agency Moody’s has seven of the 19 sub-Saharan African sovereigns that it rates on negative watch — the highest proportion of any world region — and has downgraded four countries since the start of the year.

“Despite the improving global macroeconomic environment, it is still fair to say that the risks in sub-Saharan Africa are to the downside — not for all sovereigns but in particular for those which are notably dependent on commodities prices,” says Lucie Villa, a senior analyst at Moody’s who specialises in the region.

The level of risk is “unevenly spread across the region”, she says. “There are countries that have certainly benefitted from the global macro outlook improving, but low commodities prices are causing a drag on the economic and fiscal outlook for some.”

Two countries -— Mozambique and Republic of the Congo — have defaulted on debt this year. The latter was the result of a payment to investors being blocked by a US court, whereas Mozambique faces a more fundamental

OCTOBER 14, 2017

struggle with excessive indebtedness after a misappropriation scandal.

Graham Stock, head of emerging markets sovereign research at BlueBay Asset Management says that while the general macro outlook for the region is positive, investors are failing to do their credit homework.

“We are wary of smaller economies where dollar-denominated debt is a big burden for the budget, [where] I don’t think the pricing reflects enough reward.”

This is because yields have been falling since the start of the year as investors pile in, some of whom have not fully appreciated the risk they are taking on, he argues: “We have seen yields moving lower and some of that is because of indiscriminate allocation by ETFs, and also the grab for yield in emerging markets globally. This makes it all the more important to differentiate.”

Past experience has proved that in small, thinly traded markets, a rosy mood can quickly turn sour and then opportunities for investors to sell out become limited, Mr Stock warns: “In 2008 and during the taper tantrum in 2013 there just wasn’t an exit door for investors who had not done their fundamental analysis.”

Mr Dergachev echoes his concerns: Credit risk is “quite persistent — look at what happened with the Mozambique default, and the Congo missing a payment”

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— so potential investors eyeing subSaharan African yields “have to bear in mind that Africa is not a risk-free asset”.

Perhaps some have forgotten this, he suggests: “Investors should differentiate between credits a lot, but the market is not differentiating at the moment.”

Mr Dergachev is positive about Rwanda, Ethiopia, Ghana and Zambia, and negative on Mozambique, Gabon and Angola.

Mr Stock is keen on Nigeria, Cote d’Ivoire and Kenya, and wary of Mozambique, Ethiopia and Angola.

Ms Villa suggests that warning signs investors should watch for across the continent when contemplating buying into a sovereign bond are poor infrastructure, which poses a structural impediment to economic growth, along with “particularly low institutional strength and large external foreigncurrency debt”.

“For those sovereigns, the credit risk or stress is to some extent independent of how quickly the economy is growing,” she says. “If you have a very high stock of debt to pay, or large deficits to finance, your growth rate is not going to help you that much.”

With a substantial proportion of that debt stock set to mature in the coming years, the markets’ appetite for some of the riskiest sovereign debt on the planet is set to be tested.

Copyright The Financial Times Limited 2017

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EASTERN CARIBBEAN CENTRAL BANK PLANS FOR GROWTH The ECCB released its new Strategic Plan this month, aiming to transform the region

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BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

he Eastern Caribbean Central Bank (ECCB) is having a good year. In March the institution posted a $6.3m profit after three consecutive years in the black. This growth reflected the strength of the EC dollar which, at press time, had a backing ratio of 98.3 per cent - well above the statutory baseline of 60 per cent and even exceeding the bank’s 80 per cent operational target.

Fresh from these successes, the ECCB is continuing its forward momentum with the launch of a new roadmap for growth. Unveiled earlier this month, the 2017-2021 Strategic Plan is a “new vision for a new era” according to ECCB Governor Timothy Antoine. He says people are at the heart of the initiative which calls for a new approach to tackle new challenges with the ultimate aim of delivering “socio-economic transformation”.

“It is about raising the quality of life of the people of this region,” says the Governor. “That is essentially the mission of the bank.”

To deliver on the ECCB’s twin mandate of maintaining financial stability and promoting economic development, the strategic plan identifies five main goals including enhancing organisational effectiveness, maintaining the EC dollar, strengthening the financial sector and being an effective advisor to the region’s governments.

A CHALLENGING CLIMATE

It is a comprehensive and wide-ranging

plan, designed to meet the Caribbean’s challenges head-on. Antoine says: “This plan comes at a time when our region is confronted by many challenges, including slow growth, high unemployment and increased frequency and severity of natural disasters.”

The latter is especially relevant given the region’s recent battering by hurricanes Irma and Maria - two back to back category five storms which devastated parts of the Eastern Caribbean last month. Addressing the United Nations Assembly in September, Saint Lucia Prime Minister Allen Chastanet highlighted this issue, and Saint Lucia’s vulnerability, saying: “It is impossible to avoid the facts of climate change. What is fast becoming the new normal is the intensification of extreme weather events which demands from us real solutions in real time. No longer can we depend on old mechanisms with dense bureaucracies that delay or limit a nation’s ability to safeguard its citizens during a crisis and slow the rebuilding effort.”

This year, Irma and Maria are bound to make a dent in the region’s forecasted 3 per cent growth. The ECCB’s new strategy is focusing on making the region more resilient, creating a Regional Resilience Fund that all island nations in the Eastern Caribbean Currency Union (ECCU) will contribute to and benefit from.

“Governments would consistently set aside a portion of revenues from the Citizenship by Investment funds, where they exist. [These] can then be leveraged to attract climate finance from the

various facilities established to support the Paris Climate Accord,” explains Antoine. “You save for the rainy day and God knows it has been raining quite heavily around these parts lately.”

In addition, the bank intends to continue to engage in the expansion of infrastructure for clean energy projects.

In this area it is leading by example with plans to green the entire ECCB campus in St Kitts within five years, making it wholly carbon neutral. “We are taking the lead, to signal to the world that this is important to us,” says Antoine. “Global warming is hurting our economies so we are not just talking, we are taking it seriously.”

BETTER BUSINESS

From climate change, to changing the business climate. Like many others in the region, Saint Lucia has seen its business sector stagnate, hindered by lack of access to finance, limited resources and the high cost of doing business. Saint Lucia’s economy grew by just 0.9 per cent in 2016. In delivering the 2017 budget in May, Prime Minister Chastanet called low economic growth the country’s “number one challenge”.

The ECCB aims to create a better environment for business by removing many of the obstacles long faced by the private sector. “The adoption of certain structural reforms to improve the business climate such as modern land registries, partial guarantee scheme and credit bureau are all necessary,” explains Antoine. “These reforms are urgent.”

The bank intends to work with ECCU governments to create the necessary

Basseterre, Saint Kitts - ECCB: “Nothing less than socio-economic transformation will do.”

Progress can only be achieved with the backing of a sound and resilient financial system.

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Eastern Caribbean Central Bank Governor Mr. Timothy N. J. Antoine

enabling legislation to make it easier for small businesses and entrepreneurs to enter the market. By 2021 the ECCB wants to achieve 5 per cent economic growth in the region (it is currently around 3 per cent although this may be downgraded following recent hurricane damage). It also wants to see member countries enter the top 50 in the World Bank Annual Ease of Doing Business indicators.

To further spur business, the bank is considering an innovative new solution.

Financing selected ‘transformation initiatives’ would be a first for the ECCB, but could have long-lasting

OCTOBER 14, 2017

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repercussions. “The bank would consider the deployment of a limited portion of its reserves,” explains Antoine. “The areas have not been decided but could include energy and technology, which are game changers for economic transformation.”

Exploring new avenues of business within the ECCU would help halt soaring unemployment in the region, which Antoine says has the bank “very concerned”. In Saint Lucia unemployment reached 21.6 per cent in 2016 and was especially high among young people with youth unemployment at 43.1 per cent.

“We are focusing on unemployment, especially in regard to our young people,” Antoine announced at the launch of the plan. “We have an abundant pool of young people. We want a striving and thriving citizenry that have a sense of wellbeing and progress.”

partnerships in the next three to five years.

The rapid development of FinTech brings challenges as well as opportunities, especially for regulators.

In its Strategic Plan, the ECCB acknowledges its role in overseeing the adoption of these technologies and vows to strengthen its risk management framework, prioritising KYC, AML/CFT and cybersecurity. It is also looking to implement a pilot scheme to develop a digital EC dollar.

“The region had better get ready,” says the Governor. “There can be no economic transformation without technology. Our region has to leverage technology across all spheres of development. We can either be paralysed by fear and preside over our decline, or take a proactive approach, do our due diligence and embrace a new future. The ECCB has adopted the latter approach.”

BUILDING UP BANKS

CHANGING THE CULTURE

Progress can only be achieved with the backing of a sound and resilient financial system. Threats such as de-risking and the subsequent loss of Correspondent Banking Relationships (CBR) have had a profound effect on the region’s financial services providers and led to uncertainty over the industry’s future.

To combat this, the ECCB intends to increase its advocacy with correspondent banks to provide information that will dispel any misconceptions about doing business in the region. Often international banks view ECCU institutions as small and unprofitable. To entice more CBRs, the ECCB is encouraging national banks to consolidate in the hope that a larger bank will be viewed more favourably by potential partners.

In addition to de-risking concerns, the industry is now playing catch-up as financial technology, ‘FinTech’, is transforming the sector worldwide.

FinTech is a broad term encompassing all aspects of wealth management from digital wallets to cryptocurrencies.

According to PricewaterhouseCooper’s Global FinTech Survey 2017, over 80 per cent of financial institutions believe that their business is threatened by innovators and 82 per cent expect to increase FinTech

Before the ECCB can effect change in the region, it is looking inward to change its own culture. Like any institution, the bank is only as effective as its staff, and service excellence is a high priority for the Governor.

Professional development, training and stakeholder engagement are all part of the process going forward. “The ECCB must ensure it is fit for purpose in respect of its culture, technical excellence, service excellence and responsiveness,” says Antoine.

In drafting its Strategic Plan, the bank had to look several years into the future - not an easy task given the rapid pace of change globally. The Governor is unconcerned and says the plan was developed to be flexible, with the ability to make adjustments as necessary.”We will stay relevant by keeping a very watchful eye on the bank’s operating environment and by ongoing engagement with the people of the region and the leaders of the region.”

Antoine says the plan belongs to the 628,000 citizens of the ECCU. Every nation had a chance to contribute and each will see its interests reflected in the goals and objectives. “The bank exists to serve the people of the ECCU in various ways. The ultimate end is the development of the people of the region.”

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OCTOBER 14, 2017

CORPORATE

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Sandals Resorts continues to support hurricane relief efforts in the island of Dominica post-hurricane Maria.

Sandals Saint Lucia Delivers Aid to Dominica A combined effort by Sandals Resorts’ 1,500 team members in Saint Lucia resulted in a large shipment of relief supplies being delivered to the hurricane-ravaged island of Dominica last week.

The Sandals Saint Lucia team, led by Managing Director Winston Anderson and General Managers Michael James and Chris Elliott, wanted to make a personal contribution to the cause, although the Sandals Foundation had already sent off hundreds of cases of water and other supplies the day after Hurricane Maria struck.

“This was a labour of love by our team members in Saint Lucia,” noted Managing Director Winston Anderson. “It was remarkable how they each dipped into their own pockets to buy tinned food, water, toiletries and so many other items. In fact, we received so much support from our Sandals Saint Lucia team that we could not

HANDS

use our own boats; there was just too much stuff. We had to load in onto the Flying Ray, and we must thank Mr. Brian Devaux for his support. I cannot be more proud of our Saint Lucia team.”

The effort was supported by monetary donations from the company’s Chairman Gordon ‘Butch’ Stewart and the Deputy Chairman and CEO Adam Stewart.

The boatload of items was taken across to Dominica on Tuesday by a team comprising Regional Public Relations Manager Sunil Ramdeen; Public Relations Manager for Sandals Resorts in Saint. Lucia, Alex Holder; Executive Chef for Sandals Grande, Henrique Sparrow; Watersports Manager for Sandals Grande, Terroll Compton; Maintenance Supervisor for Sandals Grande, Arthur Neptune, and Lifeguard with Sandals Halcyon, Yohanne Joseph.

Among the items delivered were bulk supplies of new blankets, toiletries, baby supplies, canned food, water, juices, cooking supplies and more, all gathered from the collective resorts in Saint Lucia and sorted at the Sandals Regional headquarters at the Halcyon Beach Resort.

Regional Loyalty and Travel Manager for Sandals Resorts International in the Eastern Caribbean, Steve Delauney – who is a native of the Nature Isle Dominica coordinated the initiative.

“I can’t express in words how much this collaborative effort means to us Dominicans. I wish to extend my heartfelt thanks to everyone on behalf of the people of my beloved homeland,” Delauney said.

The items were handed over to Jermaine Jean-Pierre, Director of Information and Communication Technology, Government of Dominica. Jean -Pierre acted as liaison between the government and Sandals Resorts in this instance.

“We are here to ensure that the items are properly managed and go in the right direction. So I can assure that our shelters and individuals in some of the hardest hit communities will benefit from this. Thank you Sandals Resorts for your support,” Jean-Pierre said upon receiving the items at the Fond Cole docks in Dominica on Tuesday morning.

Commenting on the trip, Regional Public Relations Manager Sunil Ramdeen said that many more efforts like this were required. “Dominica has been badly hurt. The stories on the news can’t really communicate just how bad it is. I am extremely proud of the efforts made by the Saint Lucia team, as well as the ongoing efforts of Sandals Resorts International and the Sandals Foundation to provide relief to many of the other islands impacted by Hurricanes Maria and Irma, including Barbuda, the Bahamas and the Turks and Caicos islands.

“Sandals is a Caribbean company and we know the power that our people have when they unite. Our Chairman and our CEO have and always will continue to support our Caribbean brothers and sisters.”

The Saint Lucia Government Gazette

Company Registration

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Sheringham Shoa Wind Farm

GREEN BOND BOOM BRINGS GROWING PAINS

BY FT ENERGY CORRESPONDENT

A €600m bond sold by a Scottish utility would not normally set pulses racing for anyone but the most committed followers of London’s debt market.

Yet, just such a fundraising by SSE plc last month attracted attention as a sign of growing momentum behind so-called green finance. SSE’s was the largest bond so far issued by a UK company with an official “green” label attached, adding to the global growth in financing ringfenced for projects which benefit the environment.

Less than a decade old, the green bond market raised $95bn last year and is on track to reach issuance of $123bn this year, according to Bloomberg New Energy Finance.

That remains a tiny fraction of the overall debt market but its expansion is forcing mainstream investors and issuers to take notice.

“More and more fund managers are diversifying their investment criteria to include green factors,” says Gregor Alexander, SSE finance director. “Not every bond will be green, but it will become part of our menu of options.”

To qualify for the green label, all bond proceeds must be committed to environmentally friendly projects, such as renewable power, energy efficient buildings and low-carbon transport. SSE, for example, is using its bond to refinance existing onshore wind farms.

European utilities Iberdrola, EDF and Engie are among others to have entered the market and France in January became the largest sovereign issuer, raising €7bn.

Green bonds have become one of the main outlets for a growing pool of international capital which comes with environmental or ethical strings attached.

Japan’s Government Pension Investment Fund, for example, has a target to move 10 per cent of its $1.3tn of assets into investments meeting certain environmental, social and governance (ESG) standards.

An estimated $10.4tn of assets worldwide involve some form of ESG measurement, according to the Global Sustainable Investment Alliance, an increase of 38 per cent from 2014.

Often dismissed in the past as a woolly concept driven more by public relations than returns for investors, sustainable finance is being forced into the mainstream by two forces.

The first is political and regulatory pressure related to global action against climate change. France in 2015 became the first country to introduce mandatory environmental reporting for financial institutions, compelling fund managers to disclose how they consider green performance when making investment decisions.

“Any institution or company that wants exposure to France now has to think about this and that is making a big impact globally,” says Zoe Knight, head of HSBC’s Centre for Sustainable Finance.

The second and arguably most powerful catalyst is the growing financial appeal of green investment as clean technology, such as wind and solar power, matures.

The World Bank’s International

OCTOBER 14, 2017

Finance Corporation has estimated that $23tn of investment will be needed between 2016 and 2030 to deliver the cuts in carbon emissions envisaged under the Paris climate agreement.

There are clear signs of this capital beginning to materialise, whether in the accelerating shift by companies such as SSE from coal-fired power generation to renewables, or rising investment by car companies in electric vehicles.

Green bonds look poised to play an important role in financing the transition but the market is not without problems. There is no agreed global standard for what qualifies as a “green” project, nor for the disclosures required of issuers to measure environmental performance.

This has led to controversy over whether traditional energy companies should be allowed to claim green credentials for bonds aimed at reducing emissions rather than eliminating them altogether.

Repsol of Spain became the first oil and gas company to issue a green bond in May, raising €500m to make its refineries and other infrastructure more efficient.

The bond was backed by research from Vigeo Eiris, the Paris-based environmental ratings company,

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showing that Repsol’s investments would avoid 1.9m tonnes of annual greenhouse gas emissions — equivalent to taking 400,000 cars off the road.

However, the bond was excluded from most of the indices which track green debt.

Nicholas Pfaff, senior director of market practice and regulatory policy at the International Capital Markets Association, says there will be different “shades of green” as the market evolves. It will be up to investors to decide how pure they want their green portfolios to be.

Demand for green bonds has so far outstripped supply, allowing issuers to price them at a premium. SSE’s eight-year green bond was almost three-times oversubscribed, resulting in the company’s lowest ever coupon for a senior bond at 0.875 per cent.

Liquidity is gradually increasing, with Chinese issuers prominent, but the market remains mainly buy-to-hold. “The biggest risk is tokenism,” says Mr Pfaff. “It is very important that issuers understand that they are signalling the transition of their business models. It should not just be a one-off.”

Copyright The Financial Times Limited 2017

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OCTOBER 14, 2017

MAKING

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CLIMBING THE CORPORATE LADDER

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BY KAYRA WILLIAMS

hanelle Mc. Vane-Fulgence has quite the success story to tell, and it has everything to do with persistence, determination, and never giving up. Sixteen years ago she started working with Renwick & Company Limited, one of Saint Lucia’s best-known distribution companies.

At the time, she held the post of receptionist, having moved on from a sales-related post at Colombian Emeralds. Fast forward five different promotions at Renwick, she’s now the company’s Sales and Marketing Manager with responsibility for six business units as well as the procurement, merchandising and promotions, and marketing departments. For the purposes of this feature, Shanelle shared with us her journey of change, opportunity and unceasing growth, under the umbrella of one of the most prolific distribution companies on island.

HOW DID YOUR CAREER WITH RENWICK BEGIN? SHANELLE: I started at Renwick &

Company as the receptionist back in 2001. Prior to becoming employed with Renwick & Company, I worked as a sales associate at a jewellery franchise in Pointe Seraphine. I made a decision to move in order to begin studying architecture. However, having set foot at Renwick I made a decision to pursue a career in marketing instead. Renwick & Company afforded me the opportunity to not only hone my own intrinsic capabilities but also to grow along with the organisation.

WHAT ARE SOME OF YOUR CHALLENGES? SHANELLE: Prior to this current role

I managed one of the largest business units in the company. I would have to say that what I found most challenging was the transition from managing a single business unit to now assisting with management of the entire company at the executive level.

IN RECENT YEARS, WHAT IS THE MOST IMPORTANT EVOLUTION IN SAINT LUCIAN CONSUMER BEHAVIOUR? SHANELLE: The influx of e-commerce. Many of our customers are ordering products directly from all over the world. To adapt to this change we have included some valueadded services to our offering and we continue to be extremely vigilant in our quest to shop the globe for the products that our customers want.

HOW IS RENWICK APPROACHING THESE NEW OPPORTUNITIES? SHANELLE: Renwick & Company has always prided itself on its adaptability to global technological innovations and we are particularly excited about the emergence of e-commerce on the local market. We are currently in the planning stages of acquiring this new avenue for reaching our customers.

CAN YOU TELL US A LITTLE ABOUT RENWICK’S HISTORY? WHAT ARE ITS MAIN PRODUCTS AND SERVICES TODAY? SHANELLE: Renwick & Company

Limited, a leading distributor of a wide array of products, was founded 51 years ago by the late Christopher Renwick.

Renwick & Company is one of the major distribution companies serving the Saint Lucian market, representing over 100 suppliers of products all over the world.

We employ roughly 110 team members, are heavily rooted in the community and endeavour to consistently provide exemplary customer service to foster long-term relationships with clients.

Our offerings include consumer grocery goods, pharmaceuticals, construction and building material, office furniture, stationery, agricultural inputs, snacks and liquor, and it is still expanding.

MOVES

IF THERE WERE ONE THING YOU COULD CHANGE ABOUT DOING BUSINESS IN SAINT LUCIA, WHAT WOULD IT BE? SHANELLE: Conducting business

From secretary to executive, Shanelle Mc. Vane-Fulgence has risen to become Renwick & Company’s Sales and Marketing Manager

WHAT’S A TYPICAL DAY LIKE IN THE OFFICE FOR YOU? SHANELLE: A typical day of work

at a company our size is always busy.

There’s never a dull moment at our office and most certainly each day affords a different experience with new opportunities to learn and grow.

AS HEAD OF SALES AND MARKETING, WHAT TYPE OF TEAMS DO YOU MANAGE? SHANELLE: I currently oversee a body of 60 team members, inclusive of Van Sales, Procurement, Merchandising & Promotions, Marketing & Corporate Communications and Customer Service, as well as the heads of our six brand divisions.

WHAT IS YOUR TEAM’S SALES STRATEGY FOR SAINT LUCIA? SHANELLE: Our team strives to be the best in the market, offering service, delivery and overall customer satisfaction. We do have a strong social conscience and we support several

Renwick & Company Limited, a leading distributor of a wide array of products, was founded 51 years ago by the late Christopher Renwick. activities of a non-profit nature yearround. Our focus continues to be building a culture of excellence.

HAVE YOU HAD ANY RECENT SUCCESS? SHANELLE: Completion of our

business plan for fiscal year 20172018. One would ask why this may be a success. It’s a success when it’s done for the very first time; after that it becomes a walk in the park.

in Saint Lucia undoubtedly has its share of challenges, as well as gainful opportunities. If there were one thing that I could change about doing business in Saint Lucia, it would be to revisit some of the bureaucratic restrictions placed on importation.

WHAT’S ON THE HORIZON FOR THE RUN UP TO 2018?

SHANELLE: What would any success story be without a goal? We began a transformation and restructuring exercise in 2016 with a three-year plan. Our goal is to see the completion of this plan in 2018. We continue to labour each year in the hope of achieving this major milestone.

ARE YOU OPTIMISTIC ABOUT THE ECONOMIC OUTLOOK FOR THE REST OF THE YEAR? SHANELLE: The planning process

of Renwick & Company’s Sales and Marketing team entails an in-depth approach to market research and economic trends as well as contingency preparedness measures. We have seen some good traction in some sectors and, as such, we remain optimistic about the economic outlook, not just for the rest of the year but well into the coming year.

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