VM Investments seeks $4.8b bond refinancing as earnings remain under pressure

VM Investments Limited, VMIL, is preparing a fresh bond issue worth as much as $4.8 billion, with most of the money set aside to deal with current borrowings instead of financing expansion.

"The proceeds of this offer will be used primarily to refinance existing debt facilities. Through the issuance of the bonds, VMIL intends to extend the maturity profile of its current obligations and improve its debt-servicing capacity," Chairman Michael McMorris said in the prospectus.

Of the total being sought, $3.96 billion is intended to repay most of a $5.43-billion bond that VMIL placed on the Jamaica Stock Exchange last April in three separate tranches. McMorris said the move should give the company greater financial room by pushing out its repayment schedule.

The new offer is scheduled to begin on June 17 and run for one month. Investors may select a 25-month bond paying 9 per cent, or a 43-month instrument carrying a 9.5 per cent coupon. By comparison, the 2025 issue included two fixed-rate tranches priced at 10 per cent and 11 per cent, while the third tranche paid a variable rate linked to policy interest rates.

VMIL operates as the investment and securities business within VM Financial Group, a major Jamaican financial group with activities in stockbroking, wealth management and building society services through VM Building Society.

The capital raise is taking place after a weaker earnings year. Net profit for the 2025 financial year declined by 70 per cent to $165.97 million, down from $555.7 million in 2024. Earnings per share moved lower from $0.37 to $0.11.

Results for the March 2026 quarter showed improvement, with VMIL reporting $70 million in net profit after recording a loss in the comparable period a year earlier. Still, a $480.3-million fair-value reduction on its investment securities portfolio wiped out that progress at the total comprehensive income level, resulting in a net comprehensive loss to shareholders for the quarter.

VMIL said its priorities going forward include stronger profit performance, better efficiency and growth across the region.