VMIL bond offer oversubscribed by $1.2 billion

The investment firm, VM Investments Limited (VMIL) has raised well over $6.6 billion in its recent bond offering to the market, having first launched with an initial target of $5.4 billion

The funds will be used to fund investments and the firm's capital base.

In a publication on Monday, VMIL advised that the basis of allotment for the offer will see investors in Tranche D and F receiving full allotment of their subscription. Investors in Tranche E, meanwhile, will receive full allotment up to their first $5 million and thereafter 63.5 per cent of their subscription exceeding that figure.

Reflecting on the achievement, Dwight Jackson, Assistant Vice President, Capital Markets, VM Wealth Management, noted, “The overwhelming response demonstrates that VMIL remains a trusted organisation and a leader in Jamaica’s financial market. Investors were drawn by the attractive interest rates, the short tenors, and our longstanding reputation for honouring commitments.”

VMIL’s subsidiary, VM Wealth Management Limited, acted as the broker and arranger for the offer. The entities are part of the VM Group.

The offer opened on December 19 and was extended from its original closure date of December 27 due to what management called “strong market demand”. 

VM currently has three preference shares in Classes A, B, and C, that are listed on the JSE. Preference shares are similar to bonds in that both are debt instruments. Class A preference shares are worth $8.5 billion in market capitalisation—when all ordinary shares are tallied, Class B is worth $608 million, and Class C is worth $1.9 billion in market capitalisation.

These preference shares are separate from its equity listing under the VMIL ticker worth $3.8 billion in market capitalisation.