Durrant Pate/Contributor

Montego Bay-based pharmaceuticals company, Indies Pharma has successfully raised J$1 billion on the local capital market for its expansion plans.

The money was raised from the issuance of a five-year bond done through a private placement arranged by NCB Capital Markets Limited. The proceeds of the bond have been used to refinance an existing J$805 million bond that became due this month, with the remainder allocated for further strategic investments.

This J$805 million bond was secured through a private placement with Sagicor Investments Jamaica back in September 2020 with the proceeds used for growth capital, including R&D and land acquisition. 

The capital raise was a five-year debt facility to fund new product research and development and to acquire real estate in Montego Bay. 

Earlier in 2020, in June to be exact, Indies Pharma executed a previous private placement of J$1.12 billion, also with Sagicor Investments, to repay a previous land purchase and for further growth capital. The J$805 million private placement bond with Sagicor Investments Jamaica, established a five-year repayment plan, expiring this month.

The J$805 million was designated as “growth capital” for new product development and research, as well as the acquisition of prime real estate in Montego Bay to support future expansion. Both private placements in 2020 were instrumental in the company’s strategy to expand into the United States market by preparing and securing approval for an Abbreviated New Drug Application (ANDA).

A significant portion of the funds, particularly from the June 2020 placement, was used to repay funds for acquiring three acres of land in Montego Bay to support the company’s growing physical capacity. Both bond placements represented efforts to secure growth capital for long-term company objectives and to capitalise on market penetration opportunities during the pandemic.