Sygnus Capital Limited, a subsidiary of the Sygnus Group, acted as lead arranger (through its investment banking unit), in a recent deal, successfully raising J$3.1 billion by way of a private placement for Outsourcing Management Limited (OML) trading as itel, with Sagicor Investments Jamaica Limited as a co-arranger for the transaction.

The bonds were issued under the Financial Services Commission exempt distribution guidelines and were structured in two series across two tenures (fve-year and three-year). The proceeds from this transaction will be used by itel to complete strategic acquisitions, fund capital expenditures and other working capital purposes. The fund raise was led by the investment banking unit at Sygnus and is in keeping with its aim to establish  long-term partnerships that provide creative financial solutions.

“Itel has played a significant role in driving growth in the local and regional economies as one of the dominant players in the Global Services Sector,” stated Gregory Samuels, senior vice president & head of investment banking at Sygnus.

“We at Sygnus are pleased to have partnered with itel on this journey by providing access to the debt capital markets. This fund raise comes at a time when investors such as pension funds are looking for stable fixed income assets issued by strong companies and so this transaction was a win-win for all the parties.” 

11 FACILITIES ACROSS NINE COUNTRIES

Founded in 2012 in Montego Bay, itel has  grown from a team of seven to more than 5,000 to become the region’s largest, home-grown BPO. The company currently has 11 facilities across nine countries spanning the United States, Canada, Jamaica, Bahamas, Mexico, St Lucia, Guyana, Columbia and Honduras.

This raise is a part of the company’s growth strategy to increase capacity and improve its geographic footprint. itel recently expanded operations to St Lucia, in July 2020, and also expanded to the Guyana and Honduras market by acquiring Emerge BPO. Additionally, itel’s latest investment in Jamaica will be a 90,000 sq ft facility located in Kingston, which will be home to 1,500 on-site employees located at 22 Chalmers Ave.

“Firstly, let me thank the team at Sygnus, Sagicor and, of course, the investors. As we’ve continued to grow over the years the Jamaican investment community has always been there to support our growth via debt and equity,” stated Yoni Epstein, founding chairman and CEO, itel.

“Itel is at an exciting point in its journey and over the next four years we are focused on our BHAG goal taking our team members to over 10,000 by 2025 and continuing to invest in the region to achieve that growth. We have the team at all levels, the business opportunities and now the capital to make it happen. Jamaica to the world!”

In addition to the bond being secured, itel performed well during the pandemic with more than 40 per cent growth in 2020. This bond issue was oversubscribed.