Scotia Investments Jamaica Limited (SIJL) recently acted as lead arranger to successfully raise J$950 million for Fontana Limited, a leader in the pharmacy care and retail industry in Jamaica. 

Fontana’s latest financial results for the second quarter ending December 31, 2024, showed revenue increasing across all 7 locations with the Portmore store improving substantially over its prior year. The company also posted increases in all key metrics – sales by category, scripts, average scripts and number of transactions. With strong cash flows and a healthy balance sheet, Fontana is well-positioned for future growth opportunities that will strengthen its leading retailing position.  

The successful bond raise is a testament to Fontana’s performance and investor confidence in its continued growth.

Scotia Investments acted as the arranger for $500 million in Notes in the private market in 2021 and more recently supported Fontana on an advisory mandate in 2024.

Commenting on the transaction, Sarah Cumming, Director of Corporate Solutions and Investment Banking said, “We engaged with Fontana in December to understand their business objectives and agree on the financing approach. Within the context of their strategic plans, we were able to structure a bond that met their demand for funding over the short term.

“With interest rates coming down and market liquidity considerations, we anticipated that we would find appetite for both a fixed rate and a variable rate structure in order to achieve a successful outcome. From a Capital Markets perspective, we were encouraged by the level of interest in the security which was oversubscribed indicating the market’s appetite for strong issuers with a proven track record.” 

Fontana’s CEO, Anne Chang, commented, “We will continue to capitalise on strategic opportunities to expand our network across Jamaica, grow our customer base and improve on operational efficiencies.

“This strategic debt raise empowers Fontana to scale our store footprint, invest in ongoing location updates, and position ourselves for further expansion.  Fontana is pleased to once again partner with the SIJL team, whose seamless execution has made this milestone possible.”