By Durrant Pate/Contributor

VM Investments Limited (VMIL) has closed its recent J$5.43 billion bond Initial Public Offer (IPO), which has been oversubscribed. 

The offer closed on January 10, having opened on December 19, 2024. The offer was initially set to close on  December 27, 2024 but was extended to January 10, due to strong demand from the market. 

Proceeds of the bond offer will be used to refinance a portion of VMIL’s maturing debt. Successful investors can expect the publishing of the basis of allocation and the allotment of bonds on the website of the Jamaica Stock Exchange (JSE) by January 20, 2025. 

Capital raise was a success 

VMIL’s subsidiary, VM Wealth Management Limited was the broker and arranger for the offer. VM Wealth Assistant Vice President of Capital Markets, Dwight Jackson is excited about the performance of the bond IPO and the fact that the capital raise was a success.

“Following the successful refinancing of our bonds, we will continue to support SMEs through private equity, trade and bridge financing, while simultaneously advancing our strategic growth initiatives in areas such as real estate,” Jackson said.

This bond offer is a strategic move to enhance VMIL’s financial flexibility and to give the public an opportunity to invest in a stalwart of the Jamaican financial landscape. By issuing new bonds to replace existing ones, the company aims to extend the maturity dates of its current debt, providing longer repayment periods. 

According to VMIL, “This approach ensures that VMIL can maintain robust liquidity, effectively manage cash flows, and pave the way for sustained future growth through more acquisitions and private equity investments”.