Pan-Jam raises $3b

Tuesday, July 21, 2015

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PAN-JAMAICAN Investment Trust Limited (Pan-Jam) has raised $3 billion or $250 million more than its initial target in an issue of corporate bonds.

Proceeds from the seven-year bond will be used to pay off existing debt of the company, along with the financing of investment activities.

Chairman and CEO Stephen Facey has expressed optimism about the future of the conglomerate, noting that the government's continued delivery of successes in relation to the IMF programme and the resulting improvement can now be seen in several key macro-economic indicators.

"We at Pan-Jam see an increasingly attractive environment for investment. We are actively seeking opportunities and have taken this deliberate step in order to better position ourselves to capitalise on them," Facey stated in a release from the company yesterday.

The bond issue was arranged and brokered by Sagicor Investments Jamaica Limited, which held that Pan-Jam's bond offer was attractive and was oversubscribed by 64 per cent, prompting the company to upsize from the original $2.75 to $3 billion.

Jermaine Deans, senior manager of treasury, stockbrokerage and capital markets at Sagicor Investments, stated that the bond was issued at the right time, ultimately allowing the local market medium-term investments in Jamaican dollars from quality corporates, given the Government of Jamaica's continued absence from the capital markets and the Bank of Jamaica's limited offers.

"As such, pension funds and other investors have had a build-up of Jamaican dollars seeking an attractive home," he stated.

For the three months ended March 2015, Pan-Jam recorded an increase in net profit of 35 per cent, up from $402.7 million during the comparative period last year to $543.7 million. Earnings per stock unit were $2.59 compared to $1.90 for the same period in 2014. The performance for the quarter was largely impacted by a notable increase of $129 million in share of results of associated and joint-venture companies.

The company has also been making significant investment in real estate. Earlier this year, Pan-Jam along with a Canadian partner completed the purchase of the old Oceana building on the Kingston waterfront and secured a long-term lease for the adjacent parking garage. Development of these properties is in progress.

Following its 50th anniversary celebration, Pan-Jam will also be opening the doors to the 129-room Courtyard by Marriott in New Kingston this October.

Pan-Jamaican Investment Trust Limited (Pan-Jam) is a multi-faceted holding company and private equity investor in businesses across a range of industries, and ranks among the largest publicly listed companies in the Caribbean. Through its subsidiaries and associated companies, the company engages in property development and management, insurance and banking, food manufacturing and distribution, hardware and home goods retail and wholesale, and tourism and attractions.

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