VM Investments Limited (VMIL) plans to raise up to $4.8 billion through a new bond offer, with the bulk of the proceeds earmarked to retire an older bond rather than fund new growth.
“The proceeds of this offer will be used primarily to refinance existing debt facilities. Through the issuance of the bonds, VMIL intends to extend the maturity profile of its current obligations and improve its debt-servicing capacity,” Chairman Michael McMorris said in the prospectus.
Some $3.96 billion of the targeted amount will go towards retiring the bulk of a
$5.43-billion bond the company listed on the Jamaica Stock Exchange in three tranches last April. McMorris said the refinancing is expected to enhance financial flexibility by providing longer repayment tenors.
The offer opens June 17 and closes a month later. Bondholders can choose between a 9 per cent coupon over 25 months or a 9.5 per cent rate over 43 months. The 2025 bond offered coupon rates of 10 per cent and 11 per cent across two fixed-rate tranches, with a third tranche carrying a floating rate tied to policy interest rates.
VM Investments is the securities and investment arm of the wider VM Financial Group, one of Jamaica’s largest financial conglomerates, with interests spanning stockbroking, wealth management and building society operations through VM Building Society.
The offer comes against a backdrop of declining earnings. For the 2025 financial year, net profit fell 70 per cent to $165.97 million from $555.7 million in 2024, with earnings per share dropping from $0.37 to $0.11.
The March 2026 quarter showed some recovery, with net profit reaching $70 million, compared with a loss in the prior-year period. However, a $480.3-million markdown on the fair value of its investment securities portfolio erased those gains at the total comprehensive level, leaving shareholders with a net comprehensive loss for the quarter.
VMIL said it plans to focus on profit growth, efficiency and regional expansion in the period ahead.
business@gleanerjm.com
