Community & Workers of Jamaica Co-operative Credit Union Limited’s (CWJCCUL) 7.35 per cent deferred shares is being delisted from the main market of the Jamaica Stock Exchange (JSE).
Taking place next Thursday (June 15), the delisting occurs on the same date which the shares mature, hence, the reason for the move.
Prior to that, effective June 13, trading in the shares will be suspended in order to facilitate a seamless delisting process. CWJCCUL created a first in Jamaica’s credit union history with the listing of J$900 million of deferred shares on the JSE back in August 2020.
The listing allowed credit union members who participated in CWJCCUL’s private offer in June 2018 to trade their shares with non-members of the credit union. CWJCCUL’s deferred shares offered investors a return of 7.35 per cent fixed for 24 months on five-year and 10-year instruments.
Interest for the five-year instrument becomes variable after year two at a reset rate of two per cent plus the six-month Treasury bill yield. Proceeds of the share offer was used by CWJCCUL to pay back maturing deferred shares; upgrade banking software to allow for Internet banking; offer new services, including partnering with Alliance Investment on card services; and as working capital.
CWJCCUL, which opened its doors in 1961 as the Jamaica Telephone Company Employees Co-operative Credit Union Limited, went through a round of eight mergers, the last being with St Elizabeth Co-operative Credit Union Limited in September 2019, making it the largest credit union in Jamaica, with a 14 per cent share of the deposits or savings managed by the movements 25 members.