Conglomerate NCB Financial Group (NCBFG) closed its bond refinancing offers this week, targeting some US$52 million equivalent across Jamaican dollar and US dollar tranches.
The amount raised has not been disclosed, though the group retained the right to upsize the offer.
“Investors love bonds,” stated NCB in its marketing of the bonds, indicating that it offers protection in challenging capital market.
The larger instrument, a Jamaican-dollar bond arranged by NCB Capital Markets Limited, sought J$4.07 billion across three tranches. Tranche A, two years at 9.50%, accounts for half the raise. Tranche B runs three years at 9.75%, while Tranche C extends five years at 10.25%. Minimum subscription is J$500,000, with semi-annual interest payments starting September 30, 2026.
Running concurrently, NCB Capital Markets (Cayman) Ltd arranged a US-dollar bond of up to US$26 million. It carries a 9.25% coupon over 2.5 years, maturing September 30, 2028. Minimum entry is US$50,000, targeting institutional and high-net-worth investors.
The bonds offer “resilience” during market swings, along with the “comfort” of knowing “capital is protected”, added NCB.
Both bonds repay principal in full at maturity and allow prepayment without penalty on 30 days’ notice. Neither will be listed on an exchange. Financial covenants require NCB’s banking, capital markets, and insurance subsidiaries to maintain minimum regulatory capital ratios.
Compared with 2024 issues maturing in 2026, the US-dollar coupon is 150 basis points higher, while the Jamaican-dollar coupon is 175 basis points lower.
NCBFG has pledged no specific assets as collateral against the notes. Bondholders rank equally with NCBFG’s other unsecured creditors. Default provisions include a 2.5% penalty above coupon on missed payments.
NCB Group reported total assets of J$2.4 trillion and equity of J$259.2 billion at December 2025.
business@gleanerjm.com
