Sygnus Capital Limited, acting as lead arranger, successfully raised J$4.3 billion by way of a private placement for Sygnus Credit Investments Limited (SCI).

SCI, a company listed on the main market of the Jamaica Stock Exchange (JSE), also pioneers private credit investment within the Caribbean.

Scotia Investments Jamaica Limited acted as a co-arranger for the transaction.

The bonds were issued under the Financial Services Commission (FSC) exempt distribution guidelines and were structured in three series across three tenors (nine months, two years and five years). The proceeds will be used to finance the growth of the company’s investment portfolio which boasts a very robust pipeline of opportunities across the region.

“We are very pleased to have led another successful capital raise for SCI this year. This time around, we decided to use a multi-tranche dual currency bond structure that was rated by CariCRIS. This structure provided institutional and high net worth investors the option to participate at various points along the yield curve given their investment horizon and outlook. The structure also provided SCI the flexibility to have a natural currency hedge and duration matching of its portfolio assets and liabilities; and the investment-grade credit ratings (jmBBB) received from CariCRIS allowed the firm to get very attractive pricing on the issue. So we see this as a win-win for all parties involved,” stated Gregory Samuels, Senior Vice President & Head of Investment Banking at Sygnus. 

This raise was a part of SCI’s growth strategy to increase its scale whilst further enhancing shareholder value by the employment of leverage.

SCI recently obtained an Investment Grade rating from Caribbean Information and Credit Rating Services Limited (CariCRIS) fulfilling its promise made to Shareholders for SCI to become a rated entity at close to US$100 million in portfolio value.

SCI was assigned a stable outlook on the ratings with the expectation that it will remain profitable and adequately capitalised in the near future.

Jason Morris, Executive Vice President & Chief Investment Officer at Sygnus shared, “This record debt capital raise represents a major milestone in SCI’s history, coming on the back of its investment-grade corporate credit rating. The new capital will provide an opportunity for the company to transition its private credit business to a larger operating scale and break into new territories across the Caribbean region.”

The issue was oversubscribed by approximately 29 per cent.