Durrant Pate/Contributor

Dolla Financial Services is tapping the local bond market, seeking upwards of J$1.5 billion in fresh capital from its latest secured bond offer, which opens next week.

The two-tranche offer, for J$500 million over five years at an interest rate of 12 per cent, and the second tranche of an equal amount for three years at 11 per cent interest, is scheduled to go on the market on October 23, and is expected to close on November 13. The micro-lender said it reserves the option to upsize the offer by issuing an additional J$500 million in total in any tranche or combination of tranches for a total amount of J$1.5 billion. 

Dolla Financial’s obligation to pay will be secured by a debenture creating a fixed and floating charge over all of its assets. It intends to use the proceeds to grow its loan portfolio and repay certain indebtedness, including approximately J$570 million falling due in October 2025. The company also intends to pay the expenses associated with the invitation out of the proceeds, which it estimates will not exceed J$30 million, inclusive of general consumption tax.

The offer is covered by certain financial covenants, namely:

• Maximum leverage ratio of no more than 4.5x 

• Minimum interest coverage ratio of no less than 1.50x 

• Maximum net debt to equity ratio of no more than 4.0x 

Interest payments details

It is expected that the secured bonds will be admitted to listing on the Jamaica Stock Exchange (JSE) bond market within 21 days of the closing date. Interest will be calculated and accrued daily, but prorated based on a 360-day year, and paid quarterly on each interest payment date. The first interest payment date will be December 30. 



Interest will begin to accrue from the date an applicant receives an allocation certificate or other written confirmation of the commencement of accrual of interest (whichever is earlier). Interest will be due and payable on December 30, March 30, June 30, and September 30 in each year, save and except that the first interest payment date shall be December 30, and the final Interest payment date shall also be the maturity date.

In his forward to the bond prospectus, company chairman Walter Scott pointed to the micro-lender’s exceptional loan portfolio growth, which rose to J$4.0 billion, an increase of J$1.5 billion or 63 per cent year-over-year.

“This exceptional growth was fueled by elevated disbursements, with the most significant surge in the latter part of Q4 2024 funded in large part from the debt raise described below. Since 2018, Dolla’s net loan portfolio has delivered a remarkable compound annual growth rate (CAGR) of 79%, reflecting the scalability and resilience of our business model,” Scott explained.

According to Scott, this strong performance was reinforced by targeted marketing initiatives and strategic partnerships tailored to meeting the evolving needs of Dolla’s clients.

It has translated into increased demand for Dolla’s lending solutions, enabling us to serve a growing base of individuals and businesses across both local and regional markets—a feat complemented by Dolla’s disbursement milestone, where in 2024 alone, it disbursed over J$2.4 billion in loans.