Capital Market Activity Remains Robust as Local Issuers Raise over J$10Bn
- Jamaica's capital market continued to demonstrate strong investor demand as Future Energy Source Company Limited (FESCO) and VM Financial Group (VMFG) collectively secured more than J$10Bn in fresh capital through separate debt and hybrid equity transactions, as disclosed on the Jamaica Stock Exchange (JSE).
- FESCO announced the successful issuance of a J$600Mn four-year corporate bond, arranged by NCB Capital Markets Limited (NCBCM), with proceeds earmarked to redeem its J$1Bn bond due in March 2027 of which roughly J$300Mn remained outstanding. A portion of the proceed was also used to provide long-term working capital to fund expansion across its business segments.
- NCBCM, which has led FESCO's previous debt issuances and its 2021 Junior Market listing, said the latest financing strengthens the company's financial flexibility as it continues to grow its position as Jamaica's largest domestic fuel marketing company.
- Meanwhile, VM Financial Group successfully listed J$9.5Mn in preference shares on the JSE’s Private Market on June 10th after the offer was oversubscribed by approximately J$1.5Bn. The funds will support the Group's strategy to build a stronger, more efficient and resilient business while enhancing its capacity to serve clients and pursue future growth opportunities.
- The transaction also marked another milestone for Jamaica's capital market, increasing the number of securities listed on the JSE Private Market to 13. Adding to the positive momentum, VMFG secured investment-grade ratings from Credit Rating Services Limited (CariCRIS), with the agency citing the company's strong market position, diversified business model and sound capitalisation.
- Together, the two transactions highlight continued investor confidence in well-positioned Jamaican companies and underscore the capital market's role in financing corporate growth and long-term business expansion.
(Sources: JSE & NCBCM Research)