The VM Financial Group, today opened its J$16-billion capital raise of three different JMD cumulative preference share offers.

The funds are needed to provide working capital support for the parent company.

VM Financial Group investments proposed to facilitate the exchange of the former parent company, Victoria Mutual Building Society (VMBS) deferred shares for VM Financial Group preference shares and for general corporate purposes.

The three preference share offers are for 24-months, 36-months and 60-months with dividends being paid quarterly on March 31, June 30, September 30 and December 31 each year.

For the 24-month security, this will carry an initial dividend rate of 11.21 per cent per annum for three-months to June 30, 2023.

Thereafter, the dividend rate varies at 300 basis points above the weighted average Treasury bill yield (WATBY) of the three-month Government of Jamaica (GOJ) Treasury Bill tender held in March, June, September and December of each year.

36 and 60-MONTHS PREFERNCE SHARES

The minimum subscription is J$5-million. As for the 36-month instrument, this will carry dividend payment fixed at 10 per cent per annum with a minimum subscription of $1million.

The proceeds of both the 24 and 36-months preference share offer are to facilitate the exchange of VMBS deferred shares for VMFG preference shares and for general corporate purposes.

The 60-month preference share offer requires a minimum subscription of J$10 million with an initial dividend rate fixed at 12.50 per cent per annum for 24 months to March 31, 2025. Thereafter, the dividend rate varies at 300 basis points above the WATBY of the three-month GOJ Treasury Bill tender.

Proceeds from this preference share offer will be used to provide working capital support for VM Financial Group investments purposes. 

All three preference share offers close on April 28, 2023.