JMMB Group has surpassed its initial expectation of raising 3 billion dollars from its Preference Share Offer which was closed last Thursday.

According to a release from the JMMB Group, four simultaneous tranches of preference shares were offered with the expectation of raising 3 billion dollars.

Head of JMMB’s Corporate Communications, Patricia Valentine says the offer forms a part of the Group’s capital management strategy, as it seeks to build-out its regional subsidiaries and expand its business lines, in the territories in which it operates.

Additionally, she says part proceeds of the offer will be used to replace funds utilized to redeem the current JMMB Limited preference shares that matured on January 7, 2016; while enabling JMMB Group to maintain a robust financial and liquidity profile.

Meanwhile, JMMB Group’s Chief Investment Officer, Paul Gray says the US dollar offer was oversubscribed by 291 per cent while the Jamaican dollar offer was oversubscribed by 17%.

He says this oversubscription demonstrates “the desire of investors to hold a diversified portfolio that includes hard currency assets”. He says going forward the company intends to make an application to the Jamaica Stock Exchange to list the preference share offerings, to facilitate the trading of each of the preference stock units on the exchange.
According to JMMB, the US$ offers will yield a fixed rate of 5.75% and 6.00% annually for JMMB non-clients and clients respectively. Investors will receive quarterly dividend payments beginning April 14, 2016.

While the J$ tranche offers a variable coupon structure, with initial rates of 7.25% and 7.50% per annum respectively for the non-client and client offers. Additionally, the Jamaican dollar tranches will offer monthly dividend payments beginning February 14, 2016.