VMIL to issue new bond
Published:Wednesday | March 9, 2022 | 12:23 PM
VM Investments Limited, VMIL, plans to raise up to $3 billion on the bond market to finance its growth, its second debt issue in six months.
The bond proceeds will finance “various corporate investment activities,” and will also refinance an older bond worth $196 million that matured on February 28.
VMIL will act as the issuer of the bond, while its subsidiary, VM Wealth Management, will act as the lead arranger and broker. The bond being offered in two tranches will earn interest of 6.50 per cent and 6.75 per cent per annum.
The investment company is aiming for $2.5 billion to $3 billion from this offer, which runs from February 24 to March 25. Its last debt issue, in the summer of 2021, raised $2.5 billion at 5.5 per cent interest, funds targeted for investment in SMEs and other asset classes. The bond matures in January 2023.
Speaking to the reason for the current bond offer, VMIL CEO Rezworth Burchenson said: “Loan growth is strong.” He was firm that the proceeds were not intended to finance the new VMIL is looking to close in the region.
The group announced the takeover of 100 per cent of Republic Funds (Barbados) Inc from Republic Bank (Barbados) Limited, a deal it expects to close in August, upon approval from regulators in Barbados and Jamaica.
VMIL is a boutique investment house with total assets of $31 billion as of year ending December 2021. It also manages $47 billion of off-balance sheet assets on behalf of clients.
The company generated annual revenue of $2 billion, from which it made a profit of $564 million, compared to $1.9 billion in revenue and $433.6 million of net profit in 2020.