VM Investments upsizes bond offer to $4.8b

VM Investments Ltd (VMIL) has increased the size of its public bond offer to $4.8 billion after increased investor demand, the company disclosed on Sunday.

“Successful applicants will receive confirmation of their allotments through their

respective brokers,” stated the release on the weekend.

All applicants who submitted completed subscriptions by the July 17 deadline received 100 per cent of their requested allotment, with no scaling back required. The 25-month tranche, carrying a 9.0 per cent coupon, raised $2.71 billion, while the 43-month tranche at 9.5 per cent accounted for $2.08 billion.

The take-up gives VMIL the firepower to execute the debt refinancing that underpins the offer. Chairman Michael McMorris said in the offer prospectus that the bulk of the proceeds – roughly $3.96 billion – will retire a portion of an existing bond the company listed on the Jamaica Stock Exchange in three tranches in April 2025. The refinancing is designed to extend maturity dates and improve VMIL’s debt-servicing capacity amid a volatile capital market.

VM Wealth Management Ltd, the VM Financial Group subsidiary that arranged the offer, said the bonds would be credited to investors’ JCSD accounts on or before the issue date.

The upsizing comes as VMIL works to stabilise earnings after a difficult 2025. For the financial year ended December, the company reported a 70 per cent decline in net profit, with earnings per share falling to $0.11 from $0.37 the previous year. Total assets grew 15 per cent to $35.06 billion, driven by a $5.27-billion increase in investment securities, but fair-value markdowns on that same portfolio continued to weigh on comprehensive income. The March 2026 quarter showed partial recovery, with net profit reaching $70 million, compared with a loss in the prior-year period, though a $480.3-million markdown on the fair value of the securities portfolio erased those gains at the comprehensive level.

business@gleanerjm.com