Durrant Pate/ Contributor

Amid liquidity running high and profitability improving, TransJamaican Highway Limited (TJH) has given notice to redeem another portion of its 8.0% JMD Cumulative Redeemable Preference Shares later this month.

This is based on TJH’s prior commitment to adjust the optional redemption entitlement to a maximum of 15% this year of its 2.7 billion preference share offer, which was taken up in January 2020 for a value of US$27 million. This redemption should be done on the sixth anniversary of the issue date, which is January 22, 2026.

Payment of the redemption amount will be made on January 30, 2026, to eligible Preference Shareholders through the Jamaica Central Securities Depository Limited (JCSD). Earlier last year, the toll road operator began partially redeemed its cumulative redeemable preference shares by offloading five per cent of the principal amount of 2.7 billion preference shares, translating to 135 million preference shares. This partial redemption was paid on July 14, 2025 in conjunction with the quarterly dividend. 

TJH have the option, but not the obligation to redeem up to 20% of the principal amount on the 6th, 7th, 8th and 9th anniversaries of the issue date with interim redemptions being executed but limited to a maximum of 20% per anniversary year. 

Strong financial position to back redemption 

Based on the latest audited financial statements, liquidity is running high and profitability climbing at TJH that it can successfully redeem more preference shares without being much of a financial burden considering that redeeming these notes are resulting in its finance costs coming down. The latest out-turn for the third quarter ended September 30, 2025 showing interest expense declining by 6% year-over-year, reflecting continued principal repayments on secured notes and strengthening of the balance sheet. 

Finance costs comprising mainly of interest on the Secured notes issued dropped to US$3.3 million, down from US$3.5 million in Q3 2024. Finance costs for the nine-month period totaled US$10.1 million, compared to US$10.5 million paid out for the nine-month period of year 2024. This US$0.4 million reduction is in line with the gradual decrease in interest expense, as scheduled principal repayments on the secured notes continue.

Group liabilities consisted mainly of long-term debts, provisions and other trade related payables remained stable at US$228 million, compared to US$229 million at December 31, 2024. Main movements included principal repayment made on the secured notes. Revenues were up 17% to US$24.4 million for the quarter while year-to-date was up 15% to US$69.4 million. 

These strong double-digit growth were driven by sustained increases in traffic volumes and continued expansion of tTag usage across the network. Net profit for the quarter climbed to US$10.3 million, up 27% while year-to-date stands at US$28.1 million, a 28% improvement.