Sagicor Investments Jamaica Limited’s capital markets unit has raised and disbursed over $ 1 billion in a bond offering it began in the third quarter of this year, the proceeds of which will be released. available to companies for working capital, retooling and expansion.
It has also received expressions of interest from several other companies and expects to close more transactions in the fourth quarter, according to capital markets director Mischa McLeod-Hines.
“We have expressions of interest from the largest companies in the Jamaican market and believe that given current market conditions other companies should take advantage of this offer,” she said.
Sagicor Investments’ decision to offer short-term funding at this time is aimed at supporting Jamaican entities that need capital to invest in their businesses and the Jamaican economy in general.
âWe believe market conditions currently support the issuance of such notes given the liquidity in the local market, particularly the Jamaican dollars. This is due to the declining demand for funding by the Jamaican government. This has enabled the expansion of private economic activity which needs more funding, âsaid McLeod-Hines.
As to whether there is a demand for such funding and from which sectors, the manager said that âbased on the economy, the sectors that are on a growth path are manufacturing, distribution, tourism. , infrastructure and finance â.
She added that âSagicor Investments focuses on sectors and institutions that expand their capacity through acquisitions, new machinery, new initiatives and new markets. We believe that local, regional and international expansion drives business decision making, as demonstrated by Jamaica Broilers. “Recent acquisition in the United States” and, therefore, the company is content to support such initiatives.
The debt is repayable over the 13-month term of the bond.
In determining the final amount it offers to businesses, “we take into consideration the use of funds and their financial statements,” McLeod-Hines said.
She said that “the final decision will be based on the adequacy of the financing for the client and its impact on the creditworthiness of the entity”.
McLeod-Hines said that Sagicor Investments is an investment bank / asset management company that has always been involved in these activities and that market conditions will dictate its degree of activity in the various markets in which it operates.
As to whether the loans are asset-backed, she said “we offer both secured and unsecured finance” and “secured options can be backed by various types of collateral.”
McLeod-Hines said trades are flexible and tailored to the needs of each business and are executed in less than 30 days via the bond offering.
The investment company “recognizes the impact on the macroeconomic growth of these companies and therefore works with the entities to increase capital in their respective businesses,” she said.