BY VERNE BURNETT

BpTT, the local arm of the global energy major BP, has not said either yes or no to Government’s proposal that the company issue depository receipts in T&T to allow locals to invest in its operations.

Finance Minister Karen Nunez-Tesheira last Tuesday said the Government would encourage international energy companies bpTT and British Gas T&T (BGTT) and other similar multinationals operating locally, to issue depository receipts in their companies.

Nunez-Tesheira said depository receipts “provide a mechanism for public companies to offer their shares in jurisdictions other than their country of listing.”

Nunez-Tesheira raised the issue during a recent courtesy call on bpTT chairman and CEO Robert Riley. However, sources said Riley did not say yes or no.

In a brief statement, bpTT said only that, “bpTT is part of BP plc, which is publicly traded internationally. The decision to issue BP depository receipts in T&T would need to be made by the BP Group.”

The Finance Minister made her call for the issuance of depository receipts last Tuesday while delivering the feature address at the formal opening of a two-day symposium on the International Financial Centre at the Hyatt Regency Trinidad hotel, 1 Dock Road, Port-of-Spain.

She said the Government is “particularly enthused” about the introduction of depository receipts as new trading options for local investors.

The prospect of depository receipts being offered in the Royal Bank of Canada (RBC) was touted as one of the selling points of the sale of RBTT to RBC. The sale was approved on March 26 by RBTT shareholders voting at a special meeting at the Hilton Trinidad and Conference Centre.

Adding that the sale of RBTT is expected to result in the creation of depository receipts, Nunez-Tesheira said, “In effect, the depository receipts related to the RBC merger of RBTT will provide small investors with a stake in one of the world’s premier financial institutions.

She added that bpTT and BGTT stand to reap tangible benefits from issuing depository receipts, including “an enhancement of their corporate image which will emphasise the separation of the local subsidiary as a distinct entity, and further strengthening of regional ties.”