Pan-Jamaican Investment Trust (Pan-Jam) has raised $3 billion through an issue of corporate bonds, exceeding its initial target of $2.75 billion. Proceeds from the seven-year bond will be used, in part, to pay down existing debt, while the remainder will be put towards general investments. The bond issue was arranged and brokered by Sagicor Investments.
The group had loans payable at the end of March amounting to $4.4 billion carrying rates on the local instruments of approximately 10 percent and as high as 10.5 percent. Just over $1.5 billion was denominated in United States dollars with $1.1 billion carrying a rate of 4.36 percent and others at around 6.5 percent. The group has cash and equivalent of $2.7 billion at March.
“The interest rate payable on the bond is has not been disclosed as it was a private placement and was the subject of a non-disclosure clause in the agreement” was the response IC Insider received when we spoke with Stephen Philbert of Pan Jamaican. Phibert stated that the move to raise the funds was not to focus on interest cost savings but to change the profile of the debt, including reducing the exposure to overseas funding. We will not incur any cost for early repayment. What IC Insider gleaned is that the rate seems to be above 7.5 percent and could well be around 8 to 8.5 percent.

Pan-Jam’s Chairman and CEO Stephen Facey remains optimistic about the future of the conglomerate. “In the context of the government’s continued delivery of successes in relation to the IMF programme and the resulting improvement that can now be seen in several key macro-economic indicators, we at Pan-Jam see an increasingly attractive environment for investment. We are actively seeking opportunities and have taken this deliberate step in order to better position ourselves to capitalize on them.”
Jermaine Deans, Senior Manager, Treasury, Stockbrokerage and Capital Markets at Sagicor Investments noted. “This was the right time because the local market is seeking medium term investments in Jamaican dollars from quality corporates, given the Government of Jamaica continued absence from the capital markets and the Bank of Jamaica limited offerings. As such, pension funds and other investors have had a build-up of Jamaican dollars seeking an attractive home. ”
For the quarter ended March 2015, Pan-Jam recorded an increase in net profit of 35 per cent, up from $403 million during the comparative period last year to $544 million. Earnings per stock unit were $2.59 compared to $1.90 for the same period in 2014. The performance for the quarter was largely impacted by an increase of $129 million in share of results of associated and joint-venture companies. Profit before taxes from the group’s regular operations only grew from $130 million to $134 million as investment income fell sharply from $135 million in 2014 to $35 million in the 2015 period. Additionally, the associated companies’ results benefitted from one off income at Sagicor Group.
Pan-Jam’s real estate investments are significant. With its history in high-quality developments, the company will open doors to the 129 room Courtyard by Marriott in New Kingston this October. Earlier this year, Pan-Jam along with a Canadian partner completed the purchase of the old Oceana building on the Kingston waterfront and secured a long-term lease for the adjacent parking garage. Development of these properties is in progress.
Pan-Jam which celebrates its 50th anniversary this year, is a multi-faceted holding company and private equity investor in businesses across a range of industries, and ranks among the largest publicly listed companies in the Caribbean. Through its subsidiaries and associated companies, it engages in property development and management, insurance and banking, food manufacturing and distribution, hardware and home goods retail and wholesale, and tourism and attractions.
The company’s trades on the Jamaica Stock Exchange with the last price being $60.55.

Pan-Jamaican Investment Trust (Pan-Jam) has raised $3 billion through an issue of corporate bonds, exceeding its initial target of $2.75 billion. Proceeds from the seven-year bond will be used, in part, to pay down existing debt, while the remainder will be put towards general investments. The bond issue was arranged and brokered by Sagicor Investments.
The group had loans payable at the end of March amounting to $4.4 billion carrying rates on the local instruments of approximately 10 percent and as high as 10.5 percent. Just over $1.5 billion was denominated in United States dollars with $1.1 billion carrying a rate of 4.36 percent and others at around 6.5 percent. The group has cash and equivalent of $2.7 billion at March.
“The interest rate payable on the bond is has not been disclosed as it was a private placement and was the subject of a non-disclosure clause in the agreement” was the response IC Insider received when we spoke with Stephen Philbert of Pan Jamaican. Phibert stated that the move to raise the funds was not to focus on interest cost savings but to change the profile of the debt, including reducing the exposure to overseas funding. We will not incur any cost for early repayment. What IC Insider gleaned is that the rate seems to be above 7.5 percent and could well be around 8 to 8.5 percent.

Pan-Jam’s Chairman and CEO Stephen Facey remains optimistic about the future of the conglomerate. “In the context of the government’s continued delivery of successes in relation to the IMF programme and the resulting improvement that can now be seen in several key macro-economic indicators, we at Pan-Jam see an increasingly attractive environment for investment. We are actively seeking opportunities and have taken this deliberate step in order to better position ourselves to capitalize on them.”
Jermaine Deans, Senior Manager, Treasury, Stockbrokerage and Capital Markets at Sagicor Investments noted. “This was the right time because the local market is seeking medium term investments in Jamaican dollars from quality corporates, given the Government of Jamaica continued absence from the capital markets and the Bank of Jamaica limited offerings. As such, pension funds and other investors have had a build-up of Jamaican dollars seeking an attractive home. ”
For the quarter ended March 2015, Pan-Jam recorded an increase in net profit of 35 per cent, up from $403 million during the comparative period last year to $544 million. Earnings per stock unit were $2.59 compared to $1.90 for the same period in 2014. The performance for the quarter was largely impacted by an increase of $129 million in share of results of associated and joint-venture companies. Profit before taxes from the group’s regular operations only grew from $130 million to $134 million as investment income fell sharply from $135 million in 2014 to $35 million in the 2015 period. Additionally, the associated companies’ results benefitted from one off income at Sagicor Group.
Pan-Jam’s real estate investments are significant. With its history in high-quality developments, the company will open doors to the 129 room Courtyard by Marriott in New Kingston this October. Earlier this year, Pan-Jam along with a Canadian partner completed the purchase of the old Oceana building on the Kingston waterfront and secured a long-term lease for the adjacent parking garage. Development of these properties is in progress.
Pan-Jam which celebrates its 50th anniversary this year, is a multi-faceted holding company and private equity investor in businesses across a range of industries, and ranks among the largest publicly listed companies in the Caribbean. Through its subsidiaries and associated companies, it engages in property development and management, insurance and banking, food manufacturing and distribution, hardware and home goods retail and wholesale, and tourism and attractions.
The company’s trades on the Jamaica Stock Exchange with the last price being $60.55.