Barita Investments is offering investors a menu of options with its new USD and JMD bond offer.
The offer opened in March and is scheduled to close on May 26, 2025. However, according to Senior Vice President of Investment Banking at Barita, Terise Kettle, they are receiving a lot of interest so the bond is expected to close early.
“Based on where we are, the traction has been good and people are interested, so we may close before May 26,” said Kettle, who was speaking on Taking Stock.
Barita Investments Limited is a publicly traded company on the Jamaica Stock Exchange. They’re an investment bank that has branches in Kingston, Mandeville and Montego Bay.
The offer
The company is offering seven tranches of senior unsecured bonds in both Jamaican and US dollars, as follows:
- Tranche 1 (USD) - 2 years, 7% per annum
- Tranche 2 (USD) - 3 years, 7.5% per annum
- Tranche 3 (JMD) - 2 years, 9.75% per annum
- Tranche 4 (JMD) - 3 years, 10% per annum
- Tranche 5 (JMD) - 5 years, 10.5% per annum
- Tranche 6 (JMD) - 7 years, 10.75% per annum
- Tranche 7 (JMD) - 10 years, 10.9% per annum
“We listened to the market and what are some of the strategic imperatives or goals that someone starting their investment journey wanted right now. We took that into consideration and that’s why we have the seven tranches and why we’ve made it very affordable, said Kettle.
The minimum investment is US$500 or J$50,000. Interest will be paid every 90 days.
If fully subscribed, Barita would be raising US$11 million and J$2.25 billion. They also have the option to upsize the offer, based on investor demand.
Kettle said the company will be using the funds to refinance some debt, and take advantage of opportunities in the market.
“We have a robust pipeline of opportunities, so it gives us some dry powder to acquire some assets that we want to acquire,” she said.
A key feature of this bond offer is that the bonds will be listed and tradeable on the Jamaica Stock Exchange. Corporate bonds are usually held until maturity and not easily traded. Listing the bonds on the stock market allows for the bonds to have greater liquidity and gives more flexibility to investors.
What are bonds?
Bonds are used by governments and companies to raise money by borrowing from investors. Investors buy in and they are paid interest over the period of the bond.
The amount of interest paid to you depends on the amount you’ve invested. Once the bond matures, investors receive their original investment back.
Bonds are typically considered to be a lower risk investment than stocks, because they are backed by secured assets. The returns also offer more interest than you would earn in a savings account and helps to hedge against inflation.
Bonds provide a predictable income stream, which is an advantage for investors looking for steady cash flow.
Investors are encouraged to read the prospectus carefully and speak to a licensed financial advisor before making investment decisions.
Click HERE to read the prospectus and apply!