GraceKennedy to accept NDX offer

Published: Wednesday | February 20, 2013 Comments 0

GK and its subsidiaries will participate in the Jamaican Government's second debt swap in three years.

The board of directors of GraceKennedy Limited has approved the full participation of the group and its subsidiaries in the National Debt Exchange offer (NDX), the conglomerate said Tuesday.

The debt swap seeks to replace J$860 billion worth of GOJ domestic bonds with 25 NDX bonds with lower coupon rates and longer tenures. The offer closes Thursday and will be settled on Friday.

GK's participation will include First Global Bank Limited, First Global Financial Services Limited and Jamaica International Insurance Company Limited.

The group's full exposure is unknown, but the banking subsidiary holds J$11 billion of GOJ securities, according to central bank data.

The group last reported consolidated investment securities of J$43 billion but the portion held in GOJ bonds is unknown.

"The board discussed the requirements and implications of the NDX which was noted as an important step towards the transformation of the Jamaican economy," said the conglomerate in a one-page statement.

"While it is expected that this will have a short-term adverse impact on profitability it will not materially affect the financial position of the group. The board considered participation in the NDX to be in the best long-term interests of the shareholders of GraceKennedy Limited."

business@gleanerjm.com

Share |

The comments on this page do not necessarily reflect the views of The Gleaner.
The Gleaner reserves the right not to publish comments that may be deemed libelous, derogatory or indecent. Please keep comments short and precise. A maximum of 8 sentences should be the target. Longer responses/comments should be sent to "Letters of the Editor" using the feedback form provided.
blog comments powered by Disqus

Top Jobs

View all Jobs

Videos