Access Financial lists its second bond on JSE
Access Financial Services listed a $200-million bond on the Jamaica Stock Exchange (JSE) on Monday, its second in three years.
The microfinancing company issued the new bond in 2015, but regulatory requirements created a gap between raising the funds and its listing, in particular the approval by the Financial Services Commission (FSC), according to Marcus James, chief executive and founder of Access Financial.
"The key thing was to get the FSC approval of the prospectus," James said Monday.
The bond listed at a $100 price is a Jamaica-dollar unsecured variable rate note due 2020. The coupon rate is fixed at 11 per cent for the first two years.
"The listing will provide liquidity for people in the bond. It will also allow them to sell their holding and allow those who want to buy the bond to get into it," James said.
The listing is a fillip for the bond market of the JSE. It's the fourth corporate bond listing since the platform debuted in 2013, with the largest being that of Jamaica Producers Group, $1 billion, earlier this year.
Access Financial floated a $102.5-million bond in late 2013, which has since matured.
James said the subscription to its bonds "shows confidence by investors in our brand".
The JSE bond market now comprises three instruments issued by Jamaica Producers, Jamaican Teas and Access.
Access' liabilities now top $1.37 billion, compared to $984 million a year ago. In the first quarter ending June, the company had total assets of $2.7 billion. Profit for the period spiked from $112 million to $145 million.