PROVEN Management Limited (PML) has gone into structuring finance deals that enables its clients to raise funds from the capital market.

The company disclosed that it successfully completed its first deal for local businessman Michael Ammar Jr but declined to give details of the arrangement.

“The loan facility, arranged by Proven Management, gave Ammar the opportunity to raise funds directly from investors,” said the company in a press statement.

“Despite the fact that risk-free rates have decreased aggressively because of the JDX, loan rates still have not been driven down and one of our objective is to educate local businesses as to the avenues of alternative funding. We see ourselves as market leaders in this area,” said Christopher Williams, CEO and president of Proven.

Last month Proven was approved as a licensed securities dealer by the Financial Services Commission (FSC) allowing the company to operate at a higher level of governance and transparency and expand its revenue sources. The licence allows Proven to expand as a brokerage providing equity and structured notes to its niche target market. They will also be offering portfolio management and investment banking.

“The terms were very attractive and we would definitely encourage other businesses to go this route,” said Ammar, who is the first vice-president of the Jamaica Chamber of Commerce. “There are big savings to be gained in terms of lower interest rates and fees. The one drawback we found was the tedious filling out of forms, which we understand is necessary to meet the regulatory requirements. Other than that we were satisfied with the facility.”

Proven is a partnership of pioneering Jamaican investment bankers whose 200 million shares priced at US 10 cents per share for Proven Investments Ltd, which opened on January 27, were quickly snapped up by 150 private and institutional investors. The deal, which netted US$20 million, was arranged by Proven Management Limited.