ISP Finance Services Limited (ISP) reports that they are looking to raise J$570 million through the issuance of bonds. These types of bonds are fixed and variable rate senior secured investment bonds to investors.
The offer for these bonds started on September 28 and will be distributed to accredited and minimum purchase investors as an exempt distribution in alignment with the Financial Services Commission’s (FSC) rules.
The microfinance outlet made it clear that the interest rate is fixed at 11.50 percent per annum for the first year and a variable rate of a six-month weighted average treasury bill plus a spread of 3.50 percent.
Additionally, there is an interest rate floor of 11.00 percent throughout the life of the bond. The lead broker and arranger, Sterling Asset Management, defines the minimum investment as J$10 million.
This is an important move by ISP Finance Services to raise money from the market which will then be used to improve the business through internal investments and probably even expand operations. Let’s see what the future holds.
