Insurance conglomerate Guardian Holdings Limited, GHL, listed two securities on the JSE Private Bond Market platform on Tuesday, the first company to utilise the platform that went live in January.

The two bonds include the GHL Tranche B 6.50% fixed-rate, unsecured note valued at $1.9 billion, and GHL Tranche D 7.00% fixed-rate, unsecured note valued at $5 billion. They formed part of a wider $13.4-billion debt raise brokered for Guardian by related company NCB Capital Markets Limited.

“These two tranches account for 52 per cent of the total raise and will result in the listing of bonds of a total nominal value at $7 billion. This was deliberate, as the higher outstanding amounts promote room for trading,” said Eric Hosin, president of Guardian Life, about the offer, adding that the transaction gives investors liquidity and a quick exit and entry.

Guardian Life is a Jamaican subsidiary of Trinidad-based GHL. The insurance conglomerate is majority owned by Jamaica’s NCB Financial Group.

The JSE Private Bond Market is the latest initiative to widen and modernise Jamaica’s capital markets. The Jamaica Stock Exchange portal will facilitate the trading of these assets by brokers and accredited rich investors. NCB Capital urged other corporates and conglomerates to list on the platform at Tuesday’s listing ceremony for the GHL bonds.

http://jamaica-gleaner.com/article/business/20210217/private-bond-market-launches-ghl-listings