VM Investments raises $30.3M in bond listing on Jamaica Stock Exchange

What's the deal? VM Investments has listed two unsecured bond tranches on the Jamaica Stock ExchangeDealroom has a profile for this one. Try Dealroom → Bond Market after raising $4.8 billion Jamaican dollars (about $30.3 million). The Tranche A and Tranche B bonds were listed on September 29.

Why now? The offer was initially targeted at $4 billion Jamaican dollars but was fully subscribed and increased by the maximum 20% permitted under its terms. That demand pushed the final raise to $4.8 billion.

What's the endgame? Proceeds will mainly refinance existing debt, extend the maturity of VMIL's obligations, and improve its debt-servicing capacity, according to Karen Hepburn, vice president of wealth distribution and revenue strategy.

Hepburn says the issue also shows how Jamaica's capital markets provide businesses with funding "beyond traditional sources" while giving investors a way to participate in economic growth.

The signal: Jamaica Stock Exchange Group chief executive officer Livingstone Morrison says the listing strengthens the fixed-income segment of the local capital market and widens investment opportunities for institutional and retail investors. The oversubscribed round points to steady appetite for corporate debt on the exchange's bond market.

Read more: radiojamaicanewsonline.com

Image credit: Ken Lund