First JSE Private Market Listings – Guardian Group $7B Bonds

Posted: February 18, 2021 at 1:37 pm

The Jamaica Stock Exchange welcomed its first two listings on its Private Market. Guardian Group listed in total $7B in Fixed Rate Unsecured Notes.

Managing Director of the JSE, Mrs. Marlene Street Forrest, in her welcome, was ecstatic as she told the audience of 8 persons on location and the specially invited stakeholders online that “Today has been eagerly anticipated by our Exchange ever since we launched the Private Market on Monday January 11. We have indeed broken a record on this one. Usually, we launch our markets in anticipation of our first listings within a few months after launch. We are thankful and grateful that just over a month of launching this market, NCB Capital Markets Ltd. has brought our first two listings. I wish to congratulate Guardian Holdings Limited in listing its Tranche B 6.5% with value of $1.99B and Tranche D with value of $5b 7% Bonds for a combined value of $6.99B on the JSE Private Market.” 

The Managing Director briefly explained the Private Market, stated that, “This market will provide investors with the opportunity to list bonds and equity securities that are in accordance with the ‘FSC Guidelines for Exempt Distribution’. Consistent with this requirement, issuers of securities in the private market must first be registered with the FSC, in accordance with these guidelines for securities to be considered for Private Listing on the JSE Private Market.”

Mr. Eric Hosin, President of Guardian Life Limited, at the Listing ceremony noted that, “We are pleased that we went to the market seeking J$13B and received the support and funding we needed. This sends a strong signal that the Guardian brand is strong, and investors have the confidence in us to know that we will deliver the returns promised to them.”

He further stated, “As noted, the transaction was quite large and featured five tranches. Today, however, we have decided to list two tranches of the Bond, GHL Tranche B 6.50% Unsecured Notes Due 2025 and the GHL Tranche D 7.00% Unsecured Notes Due 2027. These two tranches alone account for 54% of the total raised and will result in the listing of bonds with a total nominal amount of J$7B. This was deliberate as the higher outstanding amount promotes room for greater liquidity in trading.”

In his closing remarks, VP Investment Banking, NCB Capital Markets Limited, Mr. Herbert Hall, highlighted NCB Capital Markets journey to develop the Capital Markets space and said “As arrangers of the J$13.4B Guardian Holdings Bond, a part of which is being listed today, NCB Capital Markets is proud to be associated with this historic move – This now joins our list of firsts, and I would like to highlight three (3) namely:

  • First company to support the Jamaica Social Stock Exchange when we last year around this time in collaboration with the NCB Foundation pledged J$7M to Deaf Can Barista to aid the business efforts and create employment opportunities for members of the deaf community.
  • Arranging and brokering Jamaica’s largest Initial Public Offer – a record we ourselves bested last year with TransJamaican Highway Limited
  • Creating GoIPO – Jamaica premiere, fully digital IPO application system enabling investors locally and abroad to participate in the wealth building strategies championed by the JSE.

In short, we a proud to lead the charge for collaborative innovation and change.”

The Exchange again highlighted the fact that this is another platform which the JSE in its usual manner ensure that it regulates in keeping with the country’s regulations and benchmarked to international standards.

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