Dolla Financial Lists Its $1 Billion Bonds On The Private Market


Dolla Financial Lists Its $1 Billion Bonds On The Private Market

After listing its equities on the Junior Market, six months later Dolla Financial returned to the market to raise additional funds to continue its expansion drive. Dolla lists two (2) Tranches of Variable Rate Secured Corporate Bonds which were offered by way of Exempt Distribution:

(a) Tranche 1- J$500,000,000 10.50% Variable Secured 3-Year Corporate Bond

(b) Tranche 2- J$500,000,000 11.75% Variable Secured 5-Year Corporate Bond

Tranches 1 and 2 were upsized by $72.178m and $99m respectively. The 10.5% has a market capital of $572,122,125 and the 11.5% Variable Secured bond with a market capital of $599,000,000. The Company raised in total, $1.17 billion, the largest amount from a company approved to list on the JSE Private Market. The number of companies listed on the Private Market will increase to six (6) and the number of securities listed on the Private Market will increase to 12. The overall number of securities now listed on the JSE will increase to 150.

Dr Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange said, “Five and a half months ago, on a Tuesday morning just as this one, we witnessed the listing of Dollar Financial Services Ordinary Shares on the Junior Market when the company successfully raised $500m with an IPO that was oversubscribed by over 900%. It is indeed special to list companies on the Junior Market which provides the basis for the growth of our business sector, especially in these times of uncertainty. It is even more special to see that these companies take advantage of the Capital Market for the raising of capital and fund their various projects. In this there is a message that the market is aligned where there is confidence from investors that these companies will deliver and from companies that they intend to deliver. We know that the listing on the Stock Market advances that message and makes it easier for investors to invest in these offers whether it is on the Equities Market or the Bond Market, whether private or public.”

She further stated that, “At this time, where there is economic uncertainty, we have seen where the market is still positively responding to new companies that are offering their securities to the market or companies that have already listed on the market. I am using this forum to encourage other companies seeking to raise capital for growth and development to take advantage of the market confidence. Take advantage and utilize the several options available to list on the Exchange. This will certainly play a pivotal role in not only Jamaica’s economic recovery from COVID-19 but a protection against the geopolitical upheavals which are certain to impact our economy. The headwinds are here.”

Mr. Kadeen Mairs, the CEO of Dolla Financial, speaking at the listing told the audience that “Dolla was formed not only to provide financial support to entrepreneurs – MSME, but also to be an inspiration and a living example of how far you can get when you dream big. Last year when we engaged VM Wealth Management (VM) to help us get to IPO we told them we will deliver the end of year results and strategy for growth to ensure we could raise the maximum $500 million on the Junior Market. We did so five (5) months ago. Two (2) months after the IPO we realized we needed more capital to grow, as the IPO created immense demand for our lending products.

“Our balance sheet was healthy, so we said to VM, we want to raise $1 billion dollars. As our financial advisors, they undoubtedly reminded us of the current financial climate and how tough that would be. We opened the bond on Sept 1, 2022, exercised the right to upsize on October 5 and closed on October 18, after we successfully raised $1.170 billion. Now Dolla has the money to expand to the Bahamas, and to the Eastern Caribbean. We have been capitalized to fund Ultra Financier Limited, our Asset-based Lender, and are still able to reserve capital for acquisition opportunities. None of this would have been possible without the belief of our bondholders; both individuals and institutions,” added Mr. Mairs.

Mr. Dwight Jackson, Assistant Vice President Capital Market, VM Wealth Management, stated, “Dolla informed us that they wanted to raise $1 billion to continue their expansion plan. They had told us they would be coming back to the market as they had an ambitious plan. We told them that this might be difficult, especially during this period, but they were so confident. They even told us to upsize the offer and today they have raised over $1.1 billion. Dolla is going places and based on their expansion plan they will be back at the JSE to raise more capital. They are a young company with great ambition, and it will not surprise me that sometime next year they will be listed on the Main Market. I am saying to the media, use Dolla as a case study to encourage other companies to use the Stock Market to raise funds to expand their business.”