FirstCaribbean International Bank (Jamaica) Limited (FCIBJ) has advised that it holds approximately J$2 .3 billion (notional value) within the scope of the Jamaica Debt Exchange (JDX) programme. All of these eligible bonds were offered for exchange under the programme . These bonds accounted for less than 5% of the interest sensitive assets of the Bank and currently contribute approximately 8% to total interest income.
While it is expected that the interest income earned from these securities will be negatively affected in the near future, this is expected to offset by reductions in interest expenses going forward . Additionally, management is actively engaged in pursuing income diversification as part of its strategic objectives.
There are no anticipated liquidity challenges resulting from FCIBJ participation in the JDX programme, and the projected impact on equity is less than 1%, with the company`s key capital adequacy measures remaining above prudential requirements.