New Hayven Merchant Bank, a prominent Guyanese-owned financial institution, is set to inject vital capital into the local economy through a US$15 million funding initiative from the African Import-Export (Afriexim) Bank. New Hayven Merchant Bank, a prominent Guyanese-owned financial institution, is set to inject vital capital into the local economy through a US$15 million funding initiative from the African Import-Export (Afriexim) Bank.

During a recent interview on Kaieteur Radio’s Guyana’s Oil & You Programme, Chairman of NewHayven Merchant Bank, Floyd Haynes highlighted the significance of the US$15M initiative and elucidated the tangible benefits for local businesses.

Haynes acknowledged Vice President, Dr. Bharrat Jagdeo for facilitating connection with the African bank as well as with several other influential individuals during a trip to Ghana last year.

“I was invited to Ghana at the AfriExim conference that was held there (last year) and we subsequently signed a Memorandum of Understanding (MoU) between AfriExim Bank and NewHayven,” said Haynes.

Prior to the recent conference held by the bank in Guyana, both teams initiated the establishment of a warehouse facility/ a line of credit. Haynes explained, “They (AfriExim) provide a line of credit, and we, in turn, lend to the local business community, infusing additional capital into the economy to assist more local businesses. We are currently in the process of implementing this facility.”

Launched in 2022, New Hayven aims to create value for clients through innovative investment services. New Hayven’s comprehensive range of services includes asset management, investment banking, wealth management, financing solutions, and real estate development.

According to a press release issued by Tagman Media, the funding is an important step in increasing Sure Gig’s presence and capabilities in Guyana’s emerging economy. NewHayven Merchant Bank (NHMB), has organised, collateralised, and secured financing for Sure Gig Inc., a 100% Guyanese woman-owned workforce management and logistics firm.

According to a press release issued by Tagman Media, the funding is an important step in increasing Sure Gig’s presence and capabilities in Guyana’s emerging economy.

Founded in 2016, Sure Gig has made considerable economic progress by developing partnerships and providing excellent customer service. Recognizing the importance of aligning with Guyana’s unfolding economic landscape, Sure Gig has opted for NewHayven as its financial ally.

“The new funding not only strengthens Sure Gig’s financial foundation, but better enables them to deliver unparalleled end-to-end support for workforce management and logistics needs for both local and international markets,” the release stated.

Filisha Duke, CEO and Founder of Sure Gig stated, “It’s exciting because we have their support, their undivided support, not just the finance side of it.

They have an amazing CFO, Mr. Kris Appanah, they’ve been advising us and now we’re more confident in going after these big projects because we know we have support.”

Duke added, “We have found a partner who believes in our company’s vision”.

According to Floyd Haynes, Chairman of NHMB, “NewHayven remains dedicated to playing a pivotal role in propelling economic growth for businesses in Guyana.” He added, “We understand the challenges faced by Micro, Small and Medium Enterprises (MSMEs) in securing financing and we are positioned to be their bridge to financial empowerment.”

NewHayven said it remains steadfast in its mission to fuel growth and drive economic prosperity throughout Guyana by facilitating access to finance and fostering strategic partnerships with MSMEs throughout the region

Collaborating closely with an external financial entity, New Hayven Merchant Bank said it led the structuring and deployment of the arrangement, tailored specifically to meet the unique requirements of VEHSI’s project. New Hayven Merchant Bank has facilitated a US$25 million financing facility for Vreed-en-Hoop Shorebase Inc. (VEHSI).

Collaborating closely with an external financial entity, New Hayven Merchant Bank said it led the structuring and deployment of the arrangement, tailored specifically to meet the unique requirements of VEHSI’s project.

Guyana’s emergence as a key player in the global energy landscape presents strategic investment and development opportunities. New Hayven Merchant Bank said it recognizes the immense potential of the Guyanese economy and remains dedicated to empowering businesses within the region.

Founder and Chairman of New Hayven Merchant Bank, Floyd Haynes, said “Our partnership with VEHSI in this landmark project exemplifies our commitment to fueling growth and fostering sustainable development.” He added. “As Guyana undergoes profound transformation, we are proud to serve as a trusted financial partner, providing tailored financing solutions and expertise to enable businesses to thrive in this dynamic environment.”

Beyond this collaboration, New Hayven Merchant Bank said it continues actively engaging with risk capital providers to deliver bespoke financing solutions and deploy capital across diverse sectors within Guyana.

VEHSI will serve as ExxonMobil’’s special purpose vehicle for the Yellowtail development – Guyana’s fourth deepwater project. Yellowtail is well advanced with the ONE GUYANA production vessel on track for the 2025 sail-away deadline.

Guyana-headquartered New Hayven Merchant Bank yesterday signed a Memorandum of Understanding (MoU) with the African Export Import Bank (Afreximbank) in Accra, Ghana, where among other facilities, it will provide a multi-million dollar credit line to investors in the region.

“This is historic for Guyana and the Caribbean. What this shows is a willingness on the part of Afreximbank to expand their reach beyond the continent [of Africa] and into the Caribbean,” New Hayven Chief Executive Officer (CEO) Floyd Haynes told Stabroek News after yesterday’s signing.

“This opens up so much possibilities for Guyana and the Caribbean region and we are grateful that companies looking for trade financing etcetera, will be able to find that through an agreement which backed up by Afreximbank. New Hayven will screen and motivate qualifying projects for approval,” he added.

Haynes explained that New Hayven will work with the Guyanese private sector and the government to identify business opportunities and projects that will be profitable for investors and contribute to Guyanese growth and development.

“The investments will focus on economically sound businesses and projects that will create manufacturing, agriculture, technology transfer, and service jobs for the people of Guyana and the Caribbean,” he said.

“The object of the partnership is to concretise the proposed collaboration between the Afreximbank and NHMB to develop a pipeline of projects that the Bank can support through the deployment of its various products and services,” the CEO added.

The MoU comes in the backdrop of a US$1.5 billion approval by the Board of Directors of Afreximbank, issued last December for CARICOM member states that have signed on to the agreement.

“Afreximbank has approved an amount of 1.5 billion US dollars to support CARICOM with plans to double that in the near future. We do these not because it is merely a nice thing to do but because a united Africa and the Caribbean represent a more potent force that can confront the exigencies of now and the challenges of tomorrow,” Haynes posited.

Meanwhile, Afrexim-bank President, Benedict Oramah, disclosed that the Bank was also, “working with some African and Caribbean airlines to commence commercial operations between the two regions,” Oramah on Mon-day, told attendees at the bank’s 30th anniversary annual meeting being held at the Accra International Conference Centre.

“A new Middle Passage is emerging; one underpinned by trade, investment, and socio-cultural exchange, correcting the ills of slavery and fragmentation. We are supporting African investors to build ports, roads and power plants in the Caribbean; we are promoting cross acquisition of banks. Afrexim bank is proud to be home to numerous interns from the Caribbean since 2021,” the bank president emphasised.

For his part, The Bahamas Prime Minister, Philip Edward ‘Brave’ Davis, current Chairman of CARICOM, while welcoming the Afrexim Bank initiative, said it gives tangible meaning to the promotion of regional integration.

Following the establishment of the Partnership Agreement, US$1.5 billion in a credit limit was approved by Afrexim-bank’s Board of Directors to support eligible CARICOM States, with a commitment to increase the line of credit to US$3 billion, if all member states sign on. The financing will target supporting economic sectors identified as vital to boosting the region’s prosperity, particularly the development of trade-enabling infrastructure, as well as lifting trade and investments between Africa and the CARICOM Member States while providing support to Small and Medium Enterprises (SMEs).

In October of last year, President Irfaan Ali oversaw the signing of an agreement for the establishment of a partnership between CARICOM and Afreximbank. The event was held at the Cheddi Jagan International Air-port, Timehri, and was signed by Guyana’s Minis-ter of Foreign Affairs and International Cooperation, Hugh Todd, and bank president Oramah. Barbados Prime Minister Mia Mottley was also in Guy-ana and witnessed the signing. The Government of Guyana had said that the agreement aims to facilitate cooperation, support and provide assistance of all types to enable the promotion and financing of South-South trade between African countries and Member States of the Caribbean Community.

Before the signing of the agreement, a Guyanese delegation, led by Ali, and a Barbadian delegation led by Mottley, had met with a team from Afreximbank. Then in April of this year, the bank announced that its Board of Directors had approved the opening of the Bank’s CARICOM Office, to be established in Barbados.

“If we are truly to unite and bring prosperity to our people, a number of things matter. We must come together to create the environment,” Oramah noted then. “I am delighted to announce this important milestone as we forge closer ties with our brothers and sisters in the Carib-bean. There are enormous opportunities to scale the trade and investment flows between the African continent and the broader African diaspora. Invest-ment flows between Africa and the Caribbean are currently almost non-existent. This strategic partnership will open the door for enhanced trade and investment between Africa and the Caribbean. We are poised to right the wrongs of the Middle Passage. This approval is an important step towards that end. The African Export-Import Bank’s profile explains that it is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.

“At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022.

The conference which runs from June 18 to 21, has among its delegates and Heads of State, Prime Minister of The Bahamas and Chairman of CARICOM Phillip Davis, Barbados Prime Minister Mia Mottley and Prime Minister of St. Vincent and the Grenadines Ralph Gonsalves. While Guyana did not have a delegation at the conference, Foreign Secretary Robert Persaud told Stabroek News that an investment conference was slated for this country in October where major investment and trade opportunities will be highlighted.

Soruce: stabroeknews.com

embedded yt video: youtube.com/watch?v=G6LAqi6w4Sc&source_ve_path=MjM4NTE&embeds_referring_euri=https%3A%2F%2Fnewhayven.com%2F Nearly 30 years after the first merchant bank was licenced in Guyana, the New Hayven merchant bank has been launched with the promise to help small businesses secure much-needed finance and to aid the country’s transformation agenda. The licence was granted to the United States (US) based Guyanese, Floyd Haynes, who has served on Guyana’s local content advisory panel and leads the cost recovery audit team for ExxonMobil’s activities in the prolific Stabroek Block. At the launch of the bank on Thursday night, Haynes said that new financing and new financing services are needed as Guyana develops and capital is crucial to fund the government’s aggressive transformative agenda across the country. President Dr. Irfaan Ali also believes that such services are crucial at this juncture of Guyana’s development.

The Discovery of Oil in Guyana’s Atlantic Basin in 2015 has ushered in a new era of unparalleled business opportunities. One of the salient features of this new business environment is the ever increasing demand for project and other related forms of financing including equipment financing, factoring and accounts receivable financing.

Project Financing NewHayven Merchant Bank Headquarters

Project financing is a specialized form of financing for large scale, long-term projects with a specific focus on infrastructure, energy, construction, and other capital- intensive ventures. Financing is structured based on the projected cash flows and assets of the project itself, rather than relying solely on the creditworthiness of the borrower.

In project financing, lenders assess the feasibility and profitabilityoftheproject, consideringfactorssuchasmarket demand, technical viability, regulatory compliance, and environmental impact. The financing is typically structured as non-recourse or limited recourse, which means that the lenders’ right to collect the pledged collateral is limited to specific project assets or revenue streams. This helps to mitigate risks for the lenders and allows them to evaluate the project’s viability independently.

Project financing often involves multiple parties, including lenders, project sponsors, contractors, equity investors, and sometimes government entities. The project sponsors are responsible for managing and executing the project, while lenders provide the necessary capital to finance its development. Lenders and other stakeholders assess the risks associated with the project and negotiate terms, such as interest rates, repayment schedules, and security arrangements.

The repayment of project financing is primarily based on the cash flow generated by the project itself, such as revenue from operations, tolls, user fees, or government payments. The lenders rely on the project’s ability to generate sufficient cash flow to repay the debt and provide a return on investment. The assets and revenue streams of the project are often used as collateral to secure the financing.

Equipment Financing Equipment financing offers various methods of financing equipment purchases for business purposes. Some common types of equipment financing include:

On President Ali’s Official visit to India, Floyd Haynes being introduced to India’s Minister of EnergyEquipment Loans – A business borrows funds from a lender to purchase equipment. The equipment serves as collateral for the loan, and the borrower repays the loan over a specified term, usually with interest. Equipment loans can be obtained from banks, credit unions, or alternative lenders.

Equipment Leasing – An agreement, in which the lessor (financing company) purchases the equipment and leases it to the lessee (business) in exchange for regular payments. Leasing options include operating leases, where the lessor retains ownership and the lessee returns the equipment at the end of the lease term, or capital leases, which offer a purchase option for the lessee to acquire ownership.

Sale and leaseback – A financing arrangement where a business sells its existing equipment to a lessor and immediately leases it back. The business receives funds from the sale, while retaining the use of the equipment through a lease agreement. This option allows businesses to unlock capital tied up in equipment they already own.

Equipment Financing Agreements (EFA) – EFA’s are similar to equipment loans but typically involve longer repayment terms with potentially different tax and accounting implications. In an EFA, the business borrows funds from a lender to purchase equipment, and the lender takes a security interest in the equipment. Once the loan is fully paid, the ownership of the equipment transfers to the borrower.

Equipment Sale Financing – In-house financing offered by some equipment vendors to customers purchasing their equipment. These financing programs streamline the equipment purchase process by providing financing directly from the vendor. The business makes regular payments to the vendor over a specified term.

Equipment Line of Credit – A revolving credit facility specifically designed for acquiring equipment. The lender establishes a predetermined credit limit, and the business candrawfundsfromthelineofcredittopurchaseequipment as needed. As the business repays the borrowed amount, the credit becomes available again for future equipment purchases.

It’s important for businesses to consider their specific equipment needs, financial situation, and repayment preferences when choosing the most suitable equipment financing option.

Factoring and Accounts Receivable Financing Factoring and accounts receivable financing are two related methods of financing that involve using a company’s accounts receivable as collateral.

In factoring a company sells its accounts receivable (unpaid invoices) to a third-party financial institution known as a factor at a discounted rate, of around 70-90% of their total value. This provides immediate cash to the company. The factor then takes responsibility for collecting payment from the customers who owe the invoices. Once the customers pay, the factor deducts its fees and returns the remaining balance (reserve) to the company. Factoring allows businesses to improve cash flow by converting their receivables into immediate working capital.

Accounts receivable financing, also known as invoice financing or receivables-based lending, is a broader term that encompasses various financing arrangements secured by a company’s accounts receivable. In this method, a company borrows money from a lender by pledging its outstanding invoices as collateral. The lender evaluates the creditworthiness of the company’s customers and advances a percentage of the accounts receivable’s value, usually around 70-90%. The company then repays the loan, along with interest and fees, as its customers settle their invoices. Accounts receivable financing provides businesses with quick access to capital while still retaining control of the collection process.

Both factoring and accounts receivable financing offer benefits to businesses, including improved cash flow, reduced reliance on customer payments, and flexibility in managing working capital.

Financing is a valuable tool for managing cash flow and accessing working capital for growing companies. Consulting with financial advisors or lenders can help a business to carefully evaluate their specific needs, consider the costs and benefits, and choose the financing option that aligns best with their goals and circumstances.

Floyd Haynes is the founder and Chairman of NewHayven Merchant Bank in Georgetown Guyana. He founded Haynes, Inc., a multi-million-dollar accounting services firm in the United States serving public and private sector clients. Haynes served on the local content advisory panel, and is currently the Project Lead on the Cost Recovery audit of EEPGL claimed costs. Mr. Haynes is a graduate of Harvard University Kennedy School of Government, and the University of Oxford Saïd Business School. He is a Certified Public Accountant, and Certified Fraud Examiner.

A new merchant bank was Thursday night formally launched with the aim of injecting start-up capital into business ventures that have the potential to expand, grow and transform as well as search for soft loans for government, officials said.
“None of that can happen without the much-needed finance and it is that gap that we sought to fill; that is the impetus for starting New Hayven,” said the Chairman and Founder of New Hayven Merchant Bank, Dr Floyd Haynes.
Referring to President Irfaan Ali’s vision for Guyana, the New Hayven boss said the country does not have sufficient money to realise that dream. “There is a huge capital gap or money gap. In other words, there simply isn’t enough money to finance the transformation and development of this country in country. If you add up all the money in the country, it still isn’t enough,” he added.
In that regard, Dr Haynes said some of the money would come as loans from international financial institutions and friendly governments. He said a large chunk of the required cash has to come from private capital with New Hayven expected to play that “crucial role” through a range of financial instruments to help small and mid-sized businesses and infrastructural projects.
President Ali, meanwhile, cautioned against being classified as a Developed or oil-rich nation but one that is “poor developing” that needs to borrow soft loans as the cost of capital is important. “Let us not aim for classification. It will be the biggest mistake we’ll make. Don’t rush fir someone to call you a citizen of a Developed country. Let us take our time. Let us maximise the benefit of coming through this phase,” Dr Ali said.
The Guyanese leader said he expected New Hayven to go “hunting” for low-cost financing for the government.
New Hayven’s Chief Executive Officer, Kurt Kisto told the said the bank understands Guyana’s socio-economic “realities” and is equipped to mobilise financing for the public and private sector. Other services to be offered are asset management, investment banking, wealth management, mergers and acquisitions, and real estate financing. “It is thus our vision to be the merchant bank of first choice delivering impact and value for investors and clients, serving as a catalyst for positive change for the country and the people of Guyana,” he said.
The financial institution is located on Church Street, Queenstown in the building that once housed the Leader of the Opposition’s Office.
Both Dr Haynes and President Irfaan Ali admitted that they are friends but Mr Haynes indicated that he did not get any special favours as the Bank of Guyana only granted the licence after it was satisfied. “It isn’t something that was handed down overnight. It was hard work, we persevered and we are quite happy,” Dr Haynes told the launch ceremony at the Marriott Hotel. He also said that the application was being processed over the past two years during which time the Central Bank Governor Dr Gobind Ganga had often asked for additional information
“Dr Ali, Your Excellency, it is no secret, he is a friend of mine. I make no apologies for it,” said Dr Haynes who also thanked Vice President Bharrat Jagdeo with whom he had visited Africa. The President, in turn recognised Dr Haynes as his friend too. “Indeed, Floyd and I are friends,” he said, adding that that friendship long predated his assumption to the presidency.
Dr Haynes’ US-based accountancy firm has been contracted by the US State Department to provide accountancy and finance support in more than 100 countries around the world. He also served on the Local Content panel and is the leads an audit team for the cost recovery audit of ExxonMobil’s expenses in Guyana.
Among those who attended the event were former government ministers in A Partnership for National Unity+Alliance For Change (APNU+AFC) administration Joseph Harmon and Dominic Gaskin, long-time People’s National Congress Reform supporters, Vincent Alexander and Dr Richard Vanwest Charles, veteran trade unionist Lincoln Lewis and officials of the African Cultural and Development Association (ACDA). Others included top private sector executives.