Sygnus Capital Limited recently raised $ 4.3 billion through a private placement for Sygnus Credit Investments Ltd (SCI).
SCI, a company listed on the main market of the Jamaica Stock Exchange, offers private lending investments in the Caribbean. Scotia Jamaica Investments Limited acted as co-arranger for the transaction.
The bonds were issued in accordance with the exempt distribution guidelines of the Financial Services Commission and were structured in three series over three durations (9 months, two years and five years).
The proceeds will be used to fund the growth of SCI’s investment portfolio, which the company says has a very strong portfolio of opportunities in the region.
Jason Morris, Executive Vice President and Chief Investment Officer at Sygnus, said: “This record capital increase represents a major milestone in SCI’s history, building on its investment grade corporate credit rating. company to scale its private lending activity to a larger operational scale and to penetrate new territories in the Caribbean region. “
Sygnus has chosen to use a dual currency multi-tranche bond structure which has been rated by CariCRIS.
“This structure offered institutional investors and high net worth investors the opportunity to participate in various points of the yield curve depending on their time horizon and investment outlook,” said Gregory Samuels, senior vice president and head of services. investment banking at Sygnus.
The structure also provided SCI with the flexibility to have natural currency hedging and duration matching of its portfolio assets and liabilities.
In addition, the investment grade credit ratings (jmBBB) received from CariCRIS enabled the company to obtain attractive pricing on the issue.
“So we see this as a win-win for all parties involved,” added Samuels.
The company recently received an Investment Grade rating from Caribbean Information and Credit Rating Services Limited (CariCRIS) meeting one of its goals of becoming an entity rated at nearly US $ 100 million in portfolio value. SCI has been given a stable outlook on ratings in the hope that it will remain profitable and adequately capitalized for the near future.
Supported by the company’s continued strong financial performance and the recently acquired credit rating, there was an overwhelming demand for the bonds, which resulted in the issue being oversubscribed by around 29%, Sygnus said.