In a strategic financial maneuver aimed at bolstering long-term sustainability, Belize’s Social Security Board (SSB) has allocated over $6.2 million to acquire debentures from Belize Electricity Limited (BEL). The investment, characterized as a secure lending instrument rather than equity participation, is projected to yield approximately $4 million in net returns upon maturity in 2035.
Vanessa Vellos, PR and Communications Officer for SSB, clarified the investment’s security mechanisms, noting that debentures guarantee repayment regardless of corporate performance—unlike shares which fluctuate with market conditions. “Even if a business encounters challenges, their obligation to repay debenture holders remains intact,” Vellos emphasized.
The bonds were acquired at a discounted rate of $6.2 million against a face value exceeding $7.1 million. Upon maturation, SSB anticipates receiving the full principal amount supplemented by an estimated $3.2 million in accrued interest, culminating in a substantial financial gain for the social security fund.
Vellos highlighted BEL’s monopolistic position in Belize’s energy sector as a key factor in the investment’s viability. “The absence of market competitors, coupled with BEL’s consistent profitability and increasing energy demand driven by national economic growth, makes this a strategically sound investment,” she explained.
While acknowledging BEL’s recent financial headwinds, Vellos affirmed that these conditions don’t compromise the investment’s security, noting that SSB’s capital functions as a secured loan requiring mandatory repayment. Historical precedents demonstrate BEL’s consistent adherence to repayment schedules for previous ventures with SSB.
The Board reinforced its commitment to rigorous due diligence processes, with Vellos stating: “Our investment decisions undergo exhaustive analysis to ensure optimal performance and security of contributors’ funds. The public can remain confident in our stewardship of these resources.”