ISP $150M arsenal for expansion

ISP Finance raised $150 million it sought from a bond offering paying interest at 10 percent. The issue that was scheduled to close on September 22 but was closed one week earlier. An announcement issued on the morning of September 16 by the brokers VM Wealth Management stated that the Secured Public Bond Offering of ISP Finance Services was fully subscribed and is now closed.
The bonds provide an arsenal funds that will allow for a major expansion of the company’s loan portfolio at a huge spread. At the end of December 2015, the company’s loan portfolio, before loan loss provision stood at $304 million and grew marginally to J$305 million at the end of June. After loan loss provision of $70 million, it stood at $234 million as of June this year versus $241 million at December and is up from the $225 million at the end of March 2016. The new funds should aid in a major increase in lending and should result in as welling of profits. In addition to these fresh cash injection, the company will have funds generated from profits to lend as well.
The Company will apply to the Jamaica Stock Exchange to list the bonds.