VMIL to refinance debt via new bond offer




VM Investments Limited (VMIL) has launched a new bond offer, aiming to raise J$5.433 billion targeting both retail and institutional investors. The company wants to pursue growth initiatives by refinancing existing debt and funding new projects.

The bond is being offered in three tranches: 9.75 per cent per annum for an 18-month term, 10 per cent per annum for a 24-month term, and 10.5 per cent per annum for a two-year term.

They will transition from fixed to floating interest rates for an additional year. Initial investments of over $5 million will also yield higher interest rates of up to 11.5 per cent.

Management notes that the investment holding company is issuing these new bonds to replace existing ones, thereby extending the maturity dates of its current debt, providing longer repayment periods.

They stayed, “This approach ensures that VMIL can maintain robust liquidity, effectively manage cash flows, and pave the way for sustained future growth through more acquisitions and private equity investments.”

In the event of a successful take up of the offer, VMIL intends to apply for listing on the Jamaica Stock Exchange (JSE) Bond Market.

Subscription opens on Thursday, December 19, and closes on December 27. The allotment of bonds will be conducted on a “first come, first served” basis, it is indicated.

VMIL indicates that its aim is to provide competitive financing solutions for clients. The company’s primary offering includes investment banking services, private equity investments, trading of financial securities, lease financing, margin loans and corporate lending solutions.

VMIL’s subsidiaries, VM Wealth Management Limited and VM Wealth Funds (Barbados) offer investment brokering, investment advisory, asset management and securities trading services.  
VM Wealth Management will be the broker and arranger for the offer.

In the third quarter ended September 30, 2024, VMIL reported total operating revenue of $600.28 million, a 9.46 per cent increase when compared to the same period last year. Key drivers included a boost in net fees, commissions, and a recovery in net interest income, which together added $384.33 million to the total revenue, marking a 47.49 per cent increase from 2023’s comparable quarter.

For the year-to-date, VMIL reported a 46.92 per cent increase in total operating revenue, reaching $2.01 billion compared to $1.37 billion in the same period last year. This translated into net profit growth to $647.21 million when compared to $190.49 million for the nine-month ending period.

As of September 30, 2024, the Company’s total assets reached $30.03 billion, reflecting a $1.67 billion (5.90 per cent) increase over the same period in 2023, growth was largely driven by a $2.12 billion increase in investment securities, a $168.15 million decrease in resale agreements, and a $828.06 million reduction in loans payable as part of our strategy to de-risk our balance sheet, partially offset by a $922.58 million rise in other assets.

Cash and cash equivalents increased to $1.13 billion. Total liabilities reflected a reduction of $313.41 million when compared to the balance at September 30, 2023, due to an increase in other liabilities of $1.77 billion which was offset by a decrease in loans payable and repurchase agreements amounting to $1.68 billion and $299 million respectively.

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