Redemption period for shares of two and three years

Durrant Pate/Contributor

Sygnus Credit Investments (SCI) is returning to the local capital market next week seeking to raise J$4.8 billion in fresh capital through a new Perpetual Cumulative Redeemable Preference Share Offer in two tranches.

The locally listed regional investment company is offering 12-million Class H shares at J$100 per share amounting to J$1.2 billion and carrying a yield of 10%. SCI has the option to up-size the offer to J$1.6 billion. 

SCI is also offering two million Class I shares at US$10 per share, which would amount to J$3.2 billion with a yield of 8%. The preference shares offer opens on Monday, November 25, 2024, and closes two weeks later on December 12, 2024.

Redemption period for shares

Both tranches of perpetual preference shares have a minimum redemption period of 15 years. SCI intends to apply to the Jamaica Stock Exchange (JSE) for the listing on the local stock market, where shares will be tradable. SCI expects to receive the equivalent of US$26.12 million (J$4.12 billion) from the issue of the cumulative redeemable preference shares after deducting fees and expenses. Sygnus Capital is the Lead Arranger while the Lead Broker is JMMB Securities Limited.

If the Invitation is oversubscribed, the preference shares will be allocated on a pro-rata basis, in which event, applicants may be allotted fewer preference shares than were the subject of their applications.

SCI latest financials

For the financial year June 2024, SCI chalked up net profits of US$6.03 million, representing a growth of 17.3%. Total investment income grew 13.6% to a record US$10.10 million while portfolio investments grew 24.1% to a record US$188.05 million. 

This includes a carrying value of US$30.29 million, which represents SCI’s investment in the Puerto Rico Credit Fund (PRCF), up from US$24.88 million over the same period in 2023. This was due in part to SCI increasing its stake to 95.6% in December 2023, paired with the record deployment and profitability of the Puerto Rican subsidiary Acrecent Financial LLC (AFL).

Since the first payment in October 2018, SCI has consistently paid bi-annual dividends to its shareholders. The Jamaican investment company has distributed a total of US$15.10 million or 24.8% of its share capital over 13 separate dividend payments.