Micro-lender, ISP Finance Services is confirming that it has raised J$470 million in fresh capital to grow its loan portfolio while refinancing existing debt.

The company’s board yesterday confirmed the bond raise in a notice to the Jamaica Stock Exchange, where its shares are listed. The notice did not give much detail about the capital raise, which was arranged by Sterling Asset Management.

The bonds, which are set to mature in 2025, are priced at a fixed rate of 11.50 per cent for the first year and then a variable rate based on the six-month Treasury bill yield, plus a spread of 3.50 per cent.

STARTED IN 2007

The first payment is due on December 31. Thereafter, interest on the bond will be paid quarterly to maturity.

ISP Finance started in 2007 as a provider of short-term loans to security guards, then expanded to include other workers. The micro lender, which operates from Phoenix Avenue in St Andrew, offers loans largely for household expenditure, small business loans, education, debt consolidation, payday advances and healthcare expenses.

Its target market is largely made up of public sector workers.