Fesco raises $700 million via corporate bond Loop Jamaica

The content originally appeared on: Jamaica News Loop News

Future Energy Source Company Limited (FESCO) has secured debt financing through a five-year corporate bond for $700 million to be listed on the Private Market of the Jamaica Stock Exchange (JSE).

NCB Capital Markets Limited (NCBCM) acted as arranger and JCSD Trustee Services Limited was the trustee and paying agent.

FESCO is on a long-term growth path primarily focused on building out its LPG division for entry into the consumer cooking gas market.

FESCO said it wants to expand product and service offerings so customers can experience convenience and value for money, an initiative which requires significant capital outlay.

FESCO’s entry into the LPG market is just one way the company wants to diversify its revenue streams.

The petroleum marketing company also earns from its convenience store, the FYC Refill Water Store and Express Mart, motor oils and restaurant lease arrangements.

“We have partnered with NCBCM, given their expertise in structuring these arrangements and their intimate knowledge of our business and growth goals,” the company said.

Assistant Vice President of Origination and Structuring at NCBCM, Timar Jackson, commented: “We are committed to being a trusted advisor and finding solutions for our clients no matter the environment. The most recent $700 million bond raise and the purpose it is being used for is no doubt a testament to the overwhelming success of FESCO as a listed company so far. But it is also an example of how we support our clients by ensuring they have the right solutions to meet their capital needs as they pursue growth.”

NCBCM was the lead arranger in FESCO’s listing on the JSE Junior Market in 2021 and was later engaged within one year after listing to act as lead arranger and Broker for FESCO’s $1 billion bond raise, which was completed early in 2022.

The company exceeded net profit for the three months ended September 2022 for the similar period last year by $72.08 million to total $129.29 million.

Last November, the petroleum marketing company the opening of a dealer-owned and operated business model in Whitehall, St Elizabeth.

It had indicated that another would open in Ocho Rios by the end of 2022, followed by a May Pen, Clarendon service station in FY 2023.