Victoria Mutual Wealth Management (VMWM) — acting as lead broker and arranger — has raised JM$2.5 billion for its parent company, Victoria Mutual Investments Limited (VMIL).
The funds, which were raised through an 18-month bond offer at a 5.5 per cent interest rate, will be used by VMIL for the expansion of its investment in small- and medium-sized enterprises and other asset classes.
“VMWM has long been a leader in the local capital markets. This has been evident in the number and range of clients that have sought the services of our investment banking outfit. In the last three years, we have raised over $50 billion. Of course, this latest raise was particularly different because we were raising funds on behalf of our parent company; nonetheless, the terms and structure of this successful bond raise is further indication of what we are able to deliver for our clients,” said Dwight Jackson, assistant vice-president, capital markets, VMWM.
Jackson further noted that VMWM has several exciting deals being finalised for the end of the year.
“We have a number of transactions in our pipeline. For the rest of the year, VM Wealth will be focused on working assiduously to close out these transactions so we can have another very successful year,” he said.
Meanwhile, VMWM is continuing an impressive showing in the management of the number one performing property fund, with a capital raise of JM$2.1 billion to expand its operations outside of the Corporate Area and diversify the fund’s assets. This brings the debt raised by the company to JM$4.6 billion.
In August, the VM Wealth Classic Property Portfolio refinanced the debt, initially raised last year, for the acquisition of a fully tenanted, 50,000-square foot property with a long-term lease with a business process outsourcing (BPO) operator, which is expected to meaningfully enhance returns on the portfolio.
The VM Wealth Classic Portfolio is the number-one-performing real estate unit trust portfolio in Jamaica, recording an impressive 5.8 per cent six-month growth rate up to June this year; and has been a leader in the sector in recent years, boasting the highest growth rate in 2018 and 2019, and second highest in 2020.
The property fund-specific debt raise is for 12 months with an interest rate of six per cent.
Davie Martin, asset management lead, VMWM, said the new acquisition is an attractive property which will accrue positive returns for investors in the portfolio.
“This is part of a strategic move to increase our presence outside of the Corporate Area and we are expecting to see significant gains as this asset is already earning attractive returns and gives the fund exposure to a new sector with the BPO commercial space,” he said.