Sygnus Capital Limited has successfully raised $3.1 billion by way of a private placement of bonds for Jamaican-based Outsourcing Management Limited (OML) trading as itelbpo, as part of the global expansion of the Jamaican-grown business process outsourcing (BPO).
Sagicor Investments Jamaica Limited joined as co-arranger for the transaction. Sygnus Capital, a subsidiary of Sygnus Group, acted as lead arranger through its investment banking unit.
The bonds were issued under the Financial Services Commission exempt distribution guidelines and were structured in two series across two tenors of five and three years. The proceeds from the private placement will be used by itelbpo to complete strategic acquisitions, fund capital expenditures and other working capital purposes.
The move is also a precursor to itel's plans to grow its team members to over 10,000 by 2025 whilst continuing to invest in the region to achieve growth.
Commenting on the successful capital raise, Gregory Samuels, senior vice-president and head of investment banking at Sygnus says the fund raise comes at a time when investors, such as pension funds, are looking for stable fixed-income assets issued by strong companies and so this transaction was a win-win for all the parties.
He noted that, “Itel has played a significant role in driving growth in the local and regional economies as one of the dominant players in the global services sector. We at Sygnus are pleased to have partnered with itel on this journey by providing access to the debt capital markets.”
Itel performed well during the pandemic with over 40 per cent growth in 2020, which, coupled with the company's growth potential, led to an overwhelming demand for the bond and resulted in the issue being oversubscribed.
Founded in 2012 in Montego Bay, itel has grown from a team of seven to over 5,000 to become the region's largest home-grown BPO. The company currently has 11 facilities across nine countries, spanning the United States, Canada, Jamaica, Bahamas, Mexico, St Lucia, Guyana, Columbia, and Honduras.
Yoni Epstein, founding chairman and CEO of itel was elated at the successful capital raise, remarking, “Firstly, let me thank the team at Sygnus, Sagicor and, of course, the investors. As we've continued to grow over the years the Jamaican investment community has always been there to support our growth via debt and equity.”
He pointed out that, “Itel is at an exciting point in its journey, and over the next four years we are focused on our BHAG goal, taking our team members to over 10,000 by 2025 and continuing to invest in the region to achieve that growth. We have the team at all levels – the business opportunities and now the capital to make it happen. Jamaica to the world!”
Sygnus is the Caribbean's leading alternative investment management company, spanning private credit, real estate, and private equity. Sygnus Capital Limited is a licensed securities dealer in Jamaica with the Financial Services Commission and is focused on providing clients with independent investment banking and investment advisory services.