NCB rais­ing debt of US$150m

Jamaica Gleaner - - BUSINESS - Busi­ness@glean­

NA­TIONAL COM­MER­CIAL Bank Ja­maica Lim­ited (NCBJ) is rais­ing US$150 mil­lion ($19.5 bil­lion) of debt fi­nanc­ing, backed by fu­ture credit card re­ceipts from Visa and Master­Card.

The trans­ac­tion was done through Ja­maica Mer­chant Voucher Re­ceiv­ables Lim­ited.

Fitch Rat­ings as­signed a ‘BB+’ rat­ing to the notes.

“NCBJ’s market-lead­ing credit card fran­chise con­tin­ues to sup­port a grow­ing level of in­ter­na­tional Visa and Master­Card mer­chant vouch­ers. Fitch ex­pects debt ser­vice cov­er­age ra­tios (DSCRs) to be ap­prox­i­mately 5.9x. This cal­cu­la­tion con­sid­ers av­er­age rolling quar­terly col­lec­tions dur­ing the last four recorded quar­ters and the max­i­mum quar­terly debt ser­vice for the life of the pro­gramme,” the rat­ing agency said.

The deal ar­ranger for the debt is­sue was West­wood Cap­i­tal LLC.

The bank did a sim­i­lar se­cu­ri­ti­sa­tion a year ago when it raised US$250 mil­lion.


NCBJ, Ja­maica’s largest bank­ing group, pro­duces the high­est nom­i­nal profit of all listed com­pa­nies on the Ja­maica Stock Ex­change.

At year end Septem­ber 2016, the bank re­ported an­other record year of profit at $14.4 bil­lion. Its as­sets amount to $608 bil­lion, less than a third, $189 bil­lion, of which are loans.

At its last in­vestor brief­ing, NCBJ an­nounced a new fouryear strate­gic plan to make NCBJ faster, sim­pler and stronger by 2020. It will fo­cus on dig­i­tal­i­sa­tion, re­gional ex­pan­sion, core busi­ness and im­prov­ing cus­tomer ex­pe­ri­ence.

NCB Group head­quar­ters, The Atrium, at Trafal­gar Road, New Kingston.

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