Derrimon Secures Landmark Financing Partnership of Up to US$13Mn with IDB Invest

  • Derrimon Trading Company Limited (DTL) has successfully secured a landmark financing partnership of up to US$13.00Mn with IDB Invest, the private sector arm of the Inter-American Development Bank (IDB). The funds are expected to support Derrimon in achieving key initiatives focused on trade financing, brand building, employment generation, and green energy implementation.
  • The financing comprises three tranches: Tranche I: A committed senior financing of up to US$3.00Mn to finance the implementation of solar panels, and modernization of the company's warehouse and distribution center in Jamaica. Tranche II: A committed revolving credit line of up to US$5.00Mn to purchase goods from eligible suppliers in various jurisdictions, including Guyana, Suriname, and Norway. Tranche III: An uncommitted senior financing of up to US$5.00Mn to finance capital expenditure and/or working capital needs in Jamaica.
  • The proceeds will be used to support capital and capacity building, reusable green energy and the modernization and enhanced efficiency of the company’s warehouse and distribution channels. The usage of the proceeds aligns with Derrimon's commitment to sustainable practices and the development of local infrastructure.
  • The company’s stock price has increased by 4.17% since the start of 2024. It closed Tuesday’s trading session at $2.00 and currently trades at a P/E of 25.64x, which is above the Junior Market Distribution Sector Average of 16.12x. With planned investments with funds from this new partnership, we expect to see some improvement in Derrimon’s performance over the near to medium term.
  • DTL engages in the retail and wholesale distribution of consumer goods in Jamaica.

(Sources: JSE & NCBCM Research)