More than a month has passed since NCB Financial Group (NCBFG) announced plans to raise US$300 million through a bond issuance, yet the market remains largely silent on its progress, raising questions about the status of the international capital markets offer.
Initially unveiled on June 4, the bond—structured as senior unsecured notes—received preliminary credit ratings of B+ from Fitch Ratings and B– from S&P Global Ratings. NCBFG had stated that the issuance was contingent upon acceptable terms, particularly pricing, which was expected to take place on June 11. Pricing would have determined the interest rate and yield, but as of now, no updates have been provided.
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In response to inquiries from the Sunday Business Guardian on Thursday, an NCBFG executive confirmed that the transaction is still being pursued.
“We are not able at this time to answer most specific queries about it as we seek to comply with all applicable requirements. We had initially indicated an expected date of pricing, but that was only an expectation. When pricing occurs, announcements will be made as usually expected and required,” the executive stated.
There have been no updates from Fitch Ratings on the instrument, nor has a new NCBFG bond appeared on cbonds.com.
Refinancing Strategy and Delays
The proposed bond was intended to refinance US$269 million of debt maturing in 2025 and US$21 million of NCBFG’s 2026 obligations. According to roadshow documents, the US$300 million bond would mature in 2030, based on the company’s pro forma debt amortisation profile.
NCBFG also launched a tender offer on June 5 for its US$64.96 million bond due in September 2025, which carries an 8.5% interest rate. The offer, which closed on June 10—just a day before the planned pricing—was structured as a debt swap, inviting investors to exchange the 2025 bond for the proposed new bond. However, the company has not provided any subsequent updates regarding the outcome of the tender.
Despite the apparent delay in the international issuance, NCBFG proceeded with a local bond offer, seeking to raise J$2.94 billion (US$18.36 million) to refinance existing debt. The local bond, launched on June 20, included two tranches:
- Tranche A: J$1.18 billion at 9.5% interest for two years
- Tranche B: J$1.77 billion at 9.75% interest for three years
The offer was scheduled to close on July 4.
Debt Position and Strategic Moves
NCBFG’s move to the international capital markets is part of a broader strategy to rebalance its debt portfolio. As of September 30, 2024, the group’s total debt stood at J$90.72 billion (US$571.64 million), of which J$45.99 billion (US$289.82 million) was denominated in U.S. dollars. Notably, J$62.99 billion (US$396.85 million) of this debt is listed as current liabilities for the 2025 fiscal year.
The preliminary offering memorandum for the US$300 million bond indicated that NCBFG is exploring various asset sales and strategic initiatives aimed at improving liquidity and reducing debt. One major transaction was the January 24 sale of Thoma Exploitatie BV by Guardian Holdings Ltd (GHL) for J$20.5 billion (US$128.05 million), which resulted in a J$15.1 billion (US$97 million) after-tax gain, with J$9.4 billion (US$60 million) attributable to NCBFG shareholders.
However, not all planned divestments have materialised. The anticipated sale of a 30.2% stake in Clarien Group Ltd to Cornerstone Financial Holdings Ltd was terminated on May 8. Due to a pre-existing contractual provision, NCBFG is now obligated to acquire Portland Private Equity Ltd’s 17.92% stake in Clarien for approximately US$20 million.
This transaction is particularly noteworthy because Michael Lee-Chin, chairman of both NCBFG and Portland Private Equity, is central to the group’s strategic and financial decisions. Additionally, the group’s services agreement with Lee-Chin’s AIC Global Holdings—which provided administrative and support services—was mutually terminated in May 2025. AIC Global had received over US$10 million in fees for the financial year ended September 30, 2024, and US$6.05 million for the six months ended March 31, 2025.
NCBFG is also preparing for a major internal reorganisation by the end of 2025 to improve capital and operational efficiencies. The group aims to streamline redundant business lines, centralise operations such as pension activities, and consolidate its banking functions within National Commercial Bank Jamaica Ltd (NCBJ).
Financial Performance
NCBJ, which represents 53% of NCBFG’s J$2.31 trillion (US$14.96 billion) in consolidated assets, remains a cornerstone of the group. However, the Life, Health & Pension (LH&P) segment, largely driven by Guardian Holdings Ltd, accounted for 58.5% of NCBFG’s net operating profit for the 2024 financial year.
For the year ended September 30, 2024, NCBFG reported J$120 billion (US$774.9 million) in net operating income and J$21.6 billion (US$139.5 million) in net profit, with J$13.34 billion (US$86.14 million) attributable to shareholders. For the six months ended March 31, 2025, net operating income climbed 20% to J$42.2 billion (US$495.9 million), while net profit surged 108% to J$22.2 billion (US$142.5 million).
Despite these improvements, NCBFG’s stock has fallen sharply. On the Jamaica Stock Exchange (JSE), the share price has declined more than 20.59% year to date, closing at J$40.36 on Friday. On the Trinidad & Tobago Stock Exchange (TTSE), the share price is down 17.15% year to date, closing at TT$1.98. The group’s market capitalisation in Jamaica now stands at J$104.57 billion (US$649.28 million).
Market Context
Other regional issuers have successfully raised capital in recent weeks. Trinidad Generation Unlimited raised US$525 million via a senior unsecured bond with a 7.75% interest rate and 8.125% yield, maturing in 2033. The Commonwealth of The Bahamas issued US$1.067 billion in senior unsecured bonds at 8.25% interest, maturing in 2036. Both issues were rated BB or BB– by Fitch, similar to NCBFG’s subsidiary NCBJ.
By contrast, Scotiabank Peru S.A.A. raised US$400 million at a significantly lower 3.05% interest rate with a 6.103% yield, maturing in 2035. This bond received a BBB rating from Fitch.
Therefore, the delay in securing the US$300 million bond suggests that NCBFG may be facing headwinds in international capital markets, particularly in pricing and investor appetite. Meanwhile, the group is actively pursuing alternative financing strategies, including local bond issuances and asset sales, to strengthen its balance sheet and reduce its debt exposure.
Whether NCBFG can successfully execute this international bond transaction in the near term remains to be seen. Investors will be closely watching for updates as the group continues to navigate a challenging fundraising environment.
