THE $300-million deferred share offer by COK Sodality Credit Union is subscribed to almost $100 million so far, just two weeks after being open to the public.

COK chief financial officer, Courtney Wynter on Monday told the Business Observer at an investor forum in Kingston that so far COK members have been responding well to the ‘COK Wealth Supreme’ 7.85 per cent, five-year investment plan and that expectations are that the offer will be oversubscribed and close before the two-month offer period, which officially closes July 18.

“We are almost close to a third of the offer,” Wynter said. “A little under two weeks so far and we are seeing very, very encouraging signs. As a matter of fact we went into Mandeville and we have seen Mandeville pick up over the past week. We are confident that this offer will be oversubscribed and we will have a early close on the $300 million,” he added.

The promotion has two other stops on its roster after Mandeville and Kingston. Wynter said the next stops are in Portmore and Montego Bay, where it is expected that the over 240,000 members of the credit union will take up the remaining shares.

“These things people usually take their time. It’s two months. I’m sure there are people out there weighing their options. There are other offers out there. We still think we are the best priced offer at this point. People will eventually see the value of this offer and eventually come to COK so we are confident that this will be oversubscribed,” Wynter said.

The ‘Wealth Supreme’ features no withholding tax on the variable rate investment. Interest is paid monthly and investors, who must be members of the credit union are required to invest a minimum of $50,000, which is held for the five-year period. Wynter sold the virtues of the ‘Wealth Supreme’ offer as one of few investments where the effective rate after tax is 7.85 per cent and said this is why the offer has so far been so successful.

“It’s two reasons. One is if you look at the comparable investments we are probably priced better than most comparable investments. The fact that there is no withholding tax is really an incentive. The fact that it’s monthly interest payments. That’s very attractive to people who would like to put aside monies for five years and just live off the interest. We have seen offers in the marketplace and when you look at the effective rate after tax it is much lower than 7.85 per cent. So we think that it’s a very attractively priced offer and people will see the value and actually take up the offer,” he said.

He said that the credit union has actually received a number of new customers as a result of people wanting to access the investment. He said the credit union would also use the opportunity to cross-sell some of its other products to new and existing members.

“We have seen a few non-members who have come in and made their application to become members and taken up this offer. We think this is an attractive offer and people who are not members today will actually see the value that COK brings in terms of its suite of offers,” he said. “As we would say in COK we have an offer from the cradle to the grave. We have very attractive products in COK and in the credit union movement in general, and I’m sure that these potential members as they come in and look at COK not only will they take up the deferred share but they will also be attracted to many of the products that we offer.”