Durrant Pate/Contributor

Local fuel market company, Future Energy Source Company, which trades as FESCO, has raised J$600 million in fresh capital on the local bond market for paying down its debt and expansion purposes.

The 4-year corporate bonds were arranged by NCB Capital Markets (NCBCM) and the JCSD Trustee Services as Trustee. This latest bond issue strengthens FESCO’s financial flexibility, supporting its continued growth as Jamaica’s largest domestic fuel marketing company.

FESCO operates a chain of retail fuel stations, marketing and distributing petroleum products, including LPG in Jamaica with a network of branded company or dealer-operated service stations, LPG filling plants, retail and depot locations.

Proceeds from bond offer

The bonds in question are due to mature on June 2030.  Proceeds of the bond offer is for the redemption of a 5-year J$1-billion bond offer, which matured in March 2027 and the provision of general working capital for long-term growth plans across the business segments. 

NCBCM was the Lead Arranger in FESCO’s previous two bond issues and continues to offer facilities that are compatible with the service centre chain’s financial position and long-term strategies. 

NCBCM’s Assistant Vice President, Origination and Structuring, Richard Samough, comments, ” We are proud to partner with ambitious Jamaican businesses like FESCO, leveraging the depth of our expertise and underwriting capacity to deliver financing solutions that help them achieve their long-term goals and create lasting value”.

Continuing, he said, “FESCO’s growth story is one that we have had the privilege of supporting for several years. From serving as Lead Arranger on the company’s successful Junior Market listing in 2021, to structuring multiple debt issuances since then, we have continued to work closely with the FESCO team at each stage of their expansion.”