NCB Cap Markets eyes Junior Market for on-lending
WEALTH and asset management arm of the National Commercial Bank, NCB Capital Markets (NCBCM), is set to receive more than $7 billion in funding from the Development Bank of Jamaica (DBJ) subsequent to being qualified as an Approved Financial Institution (AFI) earlier this year.
The new status has not only strengthened NCBCM’s position in the equity capital market, but will give focus to debt-financing needs of small, medium-sized and large business companies listed on the Jamaica Stock Exchange (JSE) Junior Market, through direct on-lending.
Chief Executive Officer of NCBCM Steven Gooden, in a release from the company, noted that, in addition to the Junior Market companies, the institution has particular interest in Business Process Outsourcing (BPO) and tourism sector-related companies considering listing on the JSE in the short to medium term.
“The focus comes in light of the growth potential of these areas and serves to further the Group’s stance as a major supporter of small, medium and large enterprises,” he stated.
“This initiative reinforces our commitment to providing financing solutions to SMEs. It also follows closely on the heels of the launch of our private equity initiative, NCB Capital Quest, as well as allows us to more actively engage companies within the Junior Market space,” Gooden continued.
The DBJamaica has maintained its focus on addressing notable financial gaps in the MSME sector by providing capital, collateral and capacity-building support through its partnership with financial institutions.
It offers financial packages for sectors including agriculture, agro-industry, distribution, manufacturing, mining, service, tourism, transport and technology at interest rates up to 10 per cent on the Jamaican dollar and nine per cent on the United States dollar, channelled through its network of Approved Financial Institutions (AFI) and Microfinance Institutions (MFI) partners which has now been expanded to 28 financial institutions island wide.
NCBCM offers full-service investment and financing options for individuals and institutions and is known as one of the largest stock brokers in Jamaica. Among its recent mandates are lead broker for Heineken’s mandatory offer to D&G’s minority shareholders and the recently launched tTech Initial Public Offering which was significantly oversubscribed.
The Capital Markets joins the National Commercial Bank which previously qualified as an AFI, offering funding to its varied clientele through the retail and corporate banking divisions.
Products and services from the wealth and asset management institution include a range of equity, money market, global bonds and mutual fund products, as well as corporate finance and portfolio management services for individual and institutional investors.