Business
JM | Sep 1, 2022

NCB successfully raises US$300 million through international private placement

/ Our Today

administrator
NCB Group’s The Atrium in New Kingston.

Durrant Pate/Contributor

Jamaica’s leading commercial bank, National Commercial Bank (NCB), has successfully raised US$300-million on the international capital market.

The money was raised through a private placement, arranged by Florida-based Greyfell Capital Management LLC. The capital raise was executed by way of the securitization NCB’s Credit Card Merchant Voucher Receivables.

The transaction has been rated by international credit ratings agency, Fitch having been placed in the International Private Placement Market.

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

NCB 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 NCB 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 acquired by NCB in Jamaica.

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