SYGNUS Credit Investments Limited (SCI) reported a 123 per cent increase in net profit to US$9.55 million, underpinned by its Puerto Rican investment which has begun to pay dividends to the private credit company.

SCI branched out of its traditional Caribbean basin in February 2022 when it acquired the majority 93.66 per cent interest in Puerto Rican financing entity Acrecent Financial Corporation for US$21.22 million. This opened a new avenue for SCI to grow its private credit portfolio in a territory where economic depth exceeded the company’s core English- and Dutch-speaking Caribbean markets.

SCI restructured the company by having a separate fund manager oversee Acrecent’s operations and converting it to a limited liability company in June 2023. Acrecent was also structured to be held by Sygnus Credit Investments Puerto Rico Fund LLC, a private credit fund. Thus, SCI doesn’t consolidate Acrecent in its financials, but accounts for the fair value changes via its accounting policy.

After more than four years, SCI has begun to reap significant gains from that investment. Acrecent’s total investment income has risen from US$6.58 million in 2023 to US$11.29 million in 2026. The Puerto Rican company’s net profit also improved by 57 per cent to US$8.10 million for the June 2026 financial year (FY).

That translated to US$7.66 million, a fair value gain for SCI via its subsidiary Sygnus Credit Investments PR Inc. SCI PR Inc spent US$2 million during the 2026 FY to acquire an additional 0.27 per cent interest to bring its Acrecent exposure to 95.85 per cent. SCI also received a US$1.83-million dividend at the company level, based on the underlying dividend payments by Acrecent.

“Therefore, part of our strategy is to inject additional capital into that business to grow that business substantially,” said Sygnus Capital Limited co-founder Jason Morris on the SCI earnings call on September 1.

Apart from SCI recording gains from Puerto Rico, SCI’s consolidated net interest income improved by 32 per cent to US$11.75 million as it benefited from a larger private credit portfolio.

However, the year was also impacted by slightly higher impairment provisions of US$3.86 million due to the restructuring of some private credit investments for Jamaican entities which were affected by Hurricane Melissa last October and the economic climate. The higher provision doesn’t represent money lost, but an accounting requirement to account for the change in classification of the investment on the credit quality ladder.

“In looking at some of these portfolio companies, it is better to completely restructure the terms of the facility and allow the company the breathing room and the space to meet their business goals; as well as ensure that we can get repaid versus having them continue to make payments here and there and struggle,” Morris said of the company’s rationale in restructuring the credit facilities.

As part of the company’s growth objectives, SCI is currently executing a private placement to raise up to US$25 million through a dual-tranche perpetual cumulative redeemable preference share issue. This move is on top of the company’s ongoing discussions with external financing partners to access a revolving credit line to support its financing strategy.

MORRIS… the key to scaling aggressively is those strategic financing partners with those large lines of credit or lines of financing to allow us to be very flexible and nimble in how we approach the market (Photo: Joseph Wellington)

“The key to scaling aggressively is those strategic financing partners with those large lines of credit or lines of financing to allow us to be very flexible and nimble in how we approach the market,” Morris detailed on the need for dedicated financing after raising US$27.39 million in the third quarter.

SCI’s move to seek additional financing comes at the same time as Acrecent is working on expanding its US$100 million credit line. The Sygnus Capital executive pointed to the growth potential of its Puerto Rican investment which could distribute dividends larger than SCI’s record US$3.20 million paid in the 2025 FY.

SCI has also guaranteed a US$10-million revolving working-capital facility for Sygnus Investment Bahamas Inc which is borrowing the funds from IDB Invest. This IDB Invest facility is to support receivables financing in The Bahamas.

Morris didn’t disclose SCI’s stake in Sygnus Investment Bahamas but noted that the aim was to have the Bahamian entity grow its financing channels with other partners. He also highlighted that it could be accounted for in a similar way to Acrecent, with SCI benefiting from residual value and dividends in the future.

“As the sponsor, SCI is the only equity investor at the table. There will be other equity investors that will be brought to the table,” said Morris, who aims to execute the first transaction by the end of this month.

SCI’s asset base grew by 13 per cent to US$251.53 million for the June 2026 FY, underpinned by US$238.81 million in investments and US$8.33 million in interest receivable. SCI’s liabilities increased 15 per cent to US$170.81 million with US$73.44 million in notes payable and US$84.34 million in preference shares. SCI’s equity base grew 10 per cent to US$80.73 million which translates to a book value of US$0.1390.

SCI’s Jamaican dollar share price closed Tuesday at $9.80, leaving it down 17 per cent in 2026 with a 52-week low of $8.50. The United States dollar share price closed Tuesday at US$0.0575, leaving it down 12 per cent in 2026 with a 52-week low of US$0.0412.

The company’s board of directors will meet on September 14 to consider an interim dividend to shareholders. SCI has paid a cumulative US$16.90 million in preference dividends since 2022 and US$18.70 million in ordinary dividends since October 2018. SCI’s class E preference share matures in December 2026 with a face value of US$23.22 million and a maturity price of US$10 per share.

Morris noted that while the company reduced its dividend payment during the 2026 FY, the company remains focused on growing its dividend payment to shareholders. He also pointed out that SCI intends to renew its share buyback programme. SCI repurchased US$829,726 worth of ordinary shares over three years relative to the US$9 million share buyback programme size.

“From time to time as a financing firm, we have to look and read the TDs and, in some circumstances, we may temporarily reduce the dividends based on the market environment, and 2026 financial year was one such year,” Morris said.