SOUTH Jamaica Power Company Limited (SJPC) has completed a US$162-million refinancing package that extends its debt repayment periods and, according to arranger Scotia Investments Jamaica Limited, lowers its average borrowing cost.

The company, which operates the 194-megawatt natural gas power plant at Old Harbour Bay in St Catherine, secured an eight-year loan and a 10-year bond as part of the transaction, giving it longer-term financing for a facility that supplies electricity to Jamaica Public Service Company (JPS).

“This refinancing marks a major milestone for SJPC as it modernises our debt structure and provides our business with greater operational flexibility,” said Leisa Batiste-Whyte, general manager of South Jamaica Power Company.

“By transitioning to a streamlined corporate finance model and extending our debt maturity profile, we have significantly strengthened our balance sheet. This ensures that our company can focus completely on its core mission: maintaining world-class efficiency, maximising grid stability, and delivering reliable energy infrastructure to power Jamaica’s long-term economic growth.”

The refinancing follows a credit assessment earlier this year in which regional rating agency CariCRIS identified failure to refinance upcoming debt maturities as one of the factors that could lead to a downgrade of the company’s ratings or outlook.

SJPC’s package comprises a US$107-million loan, US$20 million in bonds, and US$35 million in standby letters of credit, which provide bank guarantees for payment obligations.

Scotia Investments acted as sole lead arranger and bookrunner, overseeing the structure and placement of the financing. The Bank of Nova Scotia Jamaica Limited underwrote the loan and completed its syndication before closing, bringing other lenders into the transaction.

According to Scotia Investments, demand for the loan reached 1.49 times the amount offered, while the bond attracted demand of 1.5 times its size. That translates to demand exceeding the available amounts by 49 per cent and 50 per cent, respectively.

The arranger said the transaction reduced SJPC’s weighted average cost of debt and provided greater flexibility to manage working capital. However, the release did not disclose the interest rates, the previous repayment schedule, or the annual savings expected from the refinancing. SJPC also moved to what Scotia described as a simplified corporate finance debt structure. The company’s first CariCRIS assessment, assigned on May 15, 2026, carried a stable outlook. Its regional ratings were CariA- for foreign currency obligations and CariA for local currency obligations, with corresponding Jamaica national ratings of jmA+ and jmAA-. Beyond refinancing, the agency identified compliance with debt conditions and the plant’s ability to maintain sufficient generating capacity and output as factors relevant to its credit standing.

The Old Harbour Bay plant began operating on natural gas in December 2019 following reliability testing. Built at a reported cost of US$330 million, it was developed to replace ageing heavy fuel oil generating units and formed part of Jamaica’s move towards a more diversified fuel supply.

Its combined cycle technology uses heat from gas turbines to produce steam for additional electricity generation, extracting more power from the fuel used. The Generation Procurement Entity described it at commissioning as the country’s most efficient fuel- burning power producer. Meanwhile, JPS identifies SJPC as one of the independent producers from which it purchases electricity, with the plant providing 194 megawatts of capacity.

SJPC operates under a long-term power purchase agreement and, according to Scotia’s announcement, represents approximately one-quarter of Jamaica’s net generation capacity.

“We are proud to have supported SJPC in achieving a successful refinancing that strengthens its capital structure and supports the continued delivery of reliable energy infrastructure in Jamaica,” said Sarah Cumming, Scotiabank director and head of corporate finance, Caribbean.

The company did not indicate whether the lower borrowing costs would affect the price at which SJPC sells electricity to JPS or translate into savings for electricity customers.