NCB Capital Markets raises $11 billion on bond

Jamaica Observer:  

NCB Capital Markets Ltd raised upward of $11 billion on its recent bond, which closed on March 26 offering investors a high of six per cent on their investment, surpassing last year’s historic $10-billion raise in May.

This transaction was structured as a highly rated debt security under the Financial Services Commission’s Exempt Distribution Guidelines to facilitate the widest participation by individual, corporate and institutional investors. Proceeds were used to refinance the previous debt raise, according to a news release..

The floating of this bond coincides with NCB Capital Markets receiving an initial credit rating of jmAA- on the Jamaican national scale from the Caribbean Information and Credit Rating Services Limited (CariCRIS). This is a one-notch improvement when compared to the rating received prior to last year’s $10-billion raise.

“The Jamaican national scale rating indicates that the level of creditworthiness of this obligation, adjudged in relation to other debt obligations in Jamaica, is high,” said CariCRIS in a report dated March 8.

“The take-up of this bond demonstrates the confidence that local investors have in our firm and by extension the NCB brand,” said Steven Gooden, NCB Capital Markets CEO.

“The fund raise solidifies our position as the leading investment bank in Jamaica having closed, over the last 12 months, approximately 30 corporate finance and structured product deals across the region with a value of approximately $90 billion,” Gooden added.

CariCRIS believes that increased revenue growth is expected for NCB Capital Markets for the next 12-15 months as it continues its ongoing regional expansion into the wider Caribbean.

In addition to Jamaica, NCB Capital Markets has reach in the Cayman Islands, Trinidad & Tobago, Barbados and more recently Bermuda through NCB Financial Group’s acquisition of the Clarien Group in that country.