JN Group Raises J$4.6 billion in Cap Market

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The Jamaica National Group Limited recently successfully raised J$4.6 billion in a private placement of fixed rate notes placed with institutional investors in the local capital markets.

The JN Group is the country’s largest indigenous financial institution, with nearly a century and a half of providing Jamaicans with the means to acquire capital to secure assets. A resilient organisation, the JN Group has grown from a building society, founded in Westmoreland in 1874, into one of the top three financial conglomerates in Jamaica.

The Jamaica National Group Limited includes two subsidiary holding companies and 13 member companies in Jamaica; with subsidiaries in the United Kingdom, Canada, the United States of America and The Cayman Islands. Its member companies are engaged in a wide range of services, including banking and finance, wealth management, technology, creative services and mobility and fleet management. The Group’s total assets stood at J$229.4 billion as at March 2020 and revenue recorded for the year ended March 2020 was J$23.6 billion.

The recently closed debt issue was assigned initial credit ratings of A- (local currency rating) on the Caribbean Information & Credit Rating Services (CariCRIS) regional scale and jmAA- (local currency rating) on the local national scale. This is the first time that any company in the Group has obtained a credit rating.

Earl Jarrett, deputy chairman and chief executive officer, The Jamaica National Group, described the high rating and successful offer as, “confirmation of the high quality of management, asset quality, earnings and future projections of the JN Group.”

The regional scale rating indicates that the level of creditworthiness of the proposed debt obligation is good, when compared to similar obligations in the Caribbean.

The Jamaica National Group used the funds raised to purchase assets belonging to the National Housing Trust (loan receivables), originated under its Joint Mortgage Financing Programme with JN Bank.

The funds were raised via an offer of J$4.6 billion of secured, seven-year fixed-rate bonds arranged by JN Fund Managers Limited.