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AIC Jamaica retires debt with new bond issue

Published:Friday | June 3, 2011 | 12:00 AM
A view of Kingston, stretching from New Kingston to the sea, as seen from NCB's twin towers on Oxford Road. Jamaica and Trinidad are pressing ahead with plans to transform their capitals into offshore centres. - File


  • NCB Towers to benefit from makeover

Avia Collinder, Business Reporter

VM Wealth Management says it successfully arranged the placement of a secured variable interest rate mortgage note of five-year tenor for J$800 million on behalf of AIC Jamaica Limited, owned by Michael Lee Chin.

AIC Global Holdings said Tuesday that the proceeds would also fund upgrades to the NCB Towers on Oxford Road in New Kingston.

The private bond placement was offered at 10 per cent per annum for the first three months, and serviced quarterly thereafter at the weighted Treasury bill rate plus 300 basis points.

The bond was oversubscribed, said Devon Barrett, general manager of VM Wealth, the investment arm of the Victoria Mutual Building Society group.

"The issue opened on April 28 and closed on May 11, 2011 and had total bids of approximately J$1 billion, but only J$800 million could be accommodated," Barrett told the Financial Gleaner.

"The funds were used to substantially retire maturing mortgage notes issued by AIC (Jamaica) Limited."

AIC Jamaica, with offices on Oxford Road in Kingston, is a commercial real-estate management company. Interest on the new bond will be paid quarterly.

Shamena Khan, managing director of AIC Global Holdings, said Tuesday the proceeds would allow AIC Jamaica "to repay its 2004 bond issuance in full and address capital projects that will enhance the NCB Towers environment. "

The Towers were among assets that AIC creditors two years ago had eyed for liquidation when AIC Barbados was in danger of defaulting on a series of bonds that became due. The debt was restructured and subsequently paid off.

Khan said Tuesday that the Towers would not be sold anytime soon, nixing suggestions that the asset was being positioned for listing.

"As you can appreciate, AIC Jamaica is a privately held company and so we would prefer not to disclose details of our plans. However, I can assure you that we have no current intention to sell the company nor its assets," he said.

"The objective is simply to enhance the Towers and provide a better environment for our tenants."

austanny@yahoo.com