It would appear that lower interest rates on savings, the constriction of the repurchase agreement market, and the expansionary outlook for the local business converged last year to significantly expand the financing options available.
At the Jamaica Stock Exchange (JSE) 13th Annual Regional Conference at Jamaica Pegasus this week, Steven Gooden, head of NCB Capital Markets shared that, “Historically, many, including market players, have questioned the breadth and depth of the local capital markets —that is, its capacity to absorb large, complex transactions. Then came 2017, which saw a swell in the size, number and complexity of transactions done in Jamaica.”
Gooden explained that during that period, private equity transactions booked significant gains.
i) We saw $105 billion worth of private placements issued under the Financial Services Commission’s exempt distribution regime, up approximately 24 per cent relative to prior year.
ii) Of that amount, three of those represented the largest Jamaican-dollar registrations ever in Jamaica…ranging from $10 billion to $18 billion each.
iii) One institution, through a series of debt issues, raised close to $46 billion locally to prepare for what will go down as one of the largest, if not largest, regional acquisitions for this decade.
“Not to be outdone, in the public space investors also were also able to participate in earning returns through the stock market,” Gooden shared. These included:
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