CIBC FirstCaribbean International Bank and Jamaica Public Sevice (JPS) recently signed a US$60.625-million bilateral senior term loan which will support both planned capital expenditure and debt refinancing for Jamaica’s sole integrated electric utility company.

The loan was tailored to satisfy the needs of JPS, featuring both US dollar and Jamaican dollar tranches with a fixed to floating interest rate structure.

“Our bank is known for its innovative and value-added transactions, and we are proud to have aligned with JPS on its strategic objective to reduce operating costs in order to increase productivity, improve reliability, and ultimately provide an affordable service. This deal marks the continued commitment to partnership between CIBC FirstCaribbean and JPS,” managing director, CIBC FirstCaribbean International Bank, Nigel Holness said.

CIBC FirstCaribbean is a long-standing banking partner to JPS.

Chief financial officer of JPS Vernon Douglas noted that the company is pleased to have worked with them on yet another transaction that supports its initiative to achieve more affordable rates and drive the company’s grid investment strategy.

“Our close relationships with the dedicated and specialised team meant that we were able to secure a ‘fit to purpose’ financing solution for our business,” he said.

CIBC FirstCaribbean’s associate director, Investment Banking, Sarah Cumming said: “CIBC FirstCaribbean recognizes that companies like JPS will seek to take advantage of prevailing market conditions and pursue opportunities to lower their cost of debt. In light of this, we have taken a proactive approach to providing customised financing solutions aimed not only at reducing costs, but creating capacity for reinvestment and growth.”