22nd February 2024

Better business. Better community

Business Industry and Financial

Sygnus Credit Investments oversubscribed, raising $8 billion

Sygnus Credit Investments Limited, a Caribbean leader in alternative investments, raised a record $8 billion equivalent from its public offering of JMD and USD preference shares, resulting in the offer being oversubscribed by 102 per cent.

Sygnus Capital Limited, the lead arranger for the SCI Preference Share Offer, is a licensed securities dealer in Jamaica with the Financial Services Commission and focuses on providing clients with independent Investment Banking and Investment Advisory Services.

The team said it was intentional in structuring the SCI Preference Share offer across three classes and was originally set to raise $800 million and US$20 million for the JMD and USD preference share classes respectively. The SCI Offer, which opened on Monday, November 20, 2023, received substantial demand from investors and was oversubscribed within the first week.

This strong response prompted a subsequent request and approval for an extension of the closing date to Friday, December 15, and upsizing of the offer by 100 per cent.

 The 10.5 per cent Class C JMD preference shares were oversubscribed by 109 per cent, and all applicants were allotted the first 250,000 shares and 71 per cent of the amounts in excess of 250,000 shares. The eight per cent Class D USD preference shares were oversubscribed by 68 per cent, and all applicants were allotted 100 per cent of the amount applied for. The 8.5 per cent Class E USD preference shares were oversubscribed by 136 per cent, and all applicants were allotted the first 25,000 shares and 67 per cent of the amounts in excess of the 25,000 shares.

“We are very pleased to lead such a landmark transaction for SCI, the largest raise since its inception,” said Gregory Samuels, Senior Vice President and Head of Investment Banking at Sygnus Capital. 

Samuels said the team was very deliberate in structuring the preference shares in three classes to give investors the option to participate in the share class that best fits their investment horizon and criteria and to give SCI the opportunity to diversify its funding mixed across two currencies and varied maturities. 

“This we believe, was a win-win scenario for both SCI the issuer and the investors who participated in the offer.”

Meanwhile, Jason Morris, Chief Investment Officer and Executive Vice President at Sygnus, lauded the excellent execution of our lead broker on the transaction, JMMB Group Capital Markets, who were exemplary in tapping more than 3,000 orders from investors in less than four weeks to close the deal.

“Since the launch of the capital raise, our pipeline of Jamaican investment opportunities has increased substantially, as we won several new investment mandates from portfolio companies. We remain committed to being a leader in expanding the private credit channel as a substantive source of flexible debt capital for Caribbean businesses and investment projects.”

SCI’s diverse investment approach encompasses deploying capital to various industries, including manufacturing, distribution, financial services, energy, industrial, construction, transportation, infrastructure, and business services.

Karl Townsend, Chief Country Officer (Jamaica), JMMB Group Capital Markets unit noted: “JMMB is proud to continue to support companies, like Sygnus Credit (SCI) Investment Ltd., in raising capital on the stock market to carry out their strategic growth objectives and by extension provide a win-win opportunity for all stakeholders.”

He added: “As lead broker on this offer, we are pleased that we were able to leverage our extensive network, solid expertise and innovative online platform, including the newly launched JMMB Moneyline IPO platform that allows investors, who are not JMMB clients, to take advantage of this opportunity seamlessly.”


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