GK gives go-ahead for NDX take-up

GraceKennedy Limited says it has given the go-ahead for its subsidiaries to accept the 'private exchange offer' of a number of Government bonds for lower coupon bonds with different tenors.

The company said the private exchange offer was placed on the table on March 22.

In a release yesterday, GraceKennedy pointed to subsidiary members, First Global Bank (FGB) Limited and First Global Financial Services (FGFS) Limited, as the two entities that are to participate in the exchange offer.

The Gleaner yesterday reported that the Government had quietly engaged about eight entities for assistance to fill a $10-billion shortfall after the close of the NDX offer last month.

entities approached

The eight entities were identified as the Bank of Nova Scotia, the National Commercial Bank, Jamaica Money Market Brokers, GraceKennedy, Guardian Life, Sagicor, Jamaica National Building Society and Victoria Mutual Building Society.

GraceKennedy yesterday admitted that the participation in the exchange offer will have a short-term "adverse impact" on profitability, but stated that this will not materially affect the financial position of the group or impact on the ability of FGB and FGFS to continue meet their regulatory ratios and requirements.

GraceKennedy Group CEO, Don Wehby, in commenting on the decision to participate in the private exchange offer indicated that, "This was considered to be in the best long-term interests of the shareholders of GraceKennedy based on the understanding that the signing of the country's agreement with the International Monetary Fund was contingent upon the full take-up of this private exchange offer by the GraceKennedy Group and other participating companies."