Greyfell Capital Management out of Florida to arrange private placement

Durrant Pate/Contributor

National Commercial Bank Jamaica (NCBJ), the island’s leading commercial banking group, is going to the international capital market to raise US$300 million through a private placement.

The funds will be raised by way of the securitisation of its Credit Card Merchant Voucher Receivables. The transaction will be rated by international credit ratings agency Fitch and placed in the International Private Placement Market by Florida-based Greyfell Capital Management LLC, as arranger.

The transaction is expected to close by September 30, 2022. It has been reported that the proposed notes will pay interest only for the first 3.25 years, with the first principal payment due in April 2026.

RATING OUTLOOK ON NOTES REMAINS STABLE

NCBJ has used its Credit Card Merchant Voucher Receivables for many years to raise capital, namely raising US$250 million in 2015 and another US$150 million in 2016. In July this year, Fitch upgraded the issue-specific ratings assigned to NCBJ covering all of its outstanding series of notes issued by Jamaica Merchant Voucher Receivables Limited.

The rating was upgraded to  ‘BBB-‘, up  from BB+ and Jamaica Diversified Payment Rights Company upgraded to ‘BB+’ coming from’ and ‘BB’. The Rating Outlook on the notes remains stable.

Jamaica Merchant Voucher Receivables Limited is backed by future flows due from Visa International Service Association (Visa) and MasterCard International Incorporated (MasterCard) related to international merchant vouchers (MV) acquired by NCB in Jamaica.