Business

Sygnus raises over $5.5-b for clients so far

CAPITAL PERFORMANCE

Friday, October 20, 2017

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Sygnus Capital, the newest player in the fast-paced high-demand financial market, recently closed a $1.5-billion seven-year transaction for Jamaica Producers which contributed to the more than $5.5-billion in financing that the company has raised for clients in the local capital market since it commenced operations earlier this year.

Sygnus, which continues to make significant progress in the investment banking and non-traditional investment space, acted as joint arranger in the transactions, using various creative and innovative structures such as sale and leaseback of real estate, convertible preference shares with PIKs (Profit-In-Kind), notes with profit participation, and commodity-linked repurchase agreements.

“Innovation is one of our firm's 'Three Is' Principle that we strive to live by, and so at all times we try to structure customised financing solutions to create value and unlock capital for our clients,” said Gregory Samuels, executive director, investment banking and head of corporate advisory.

Asked to comment on word that the boutique investment bank is leading two to three mergers and acquisition transactions totalling just under US$80 million, Sygnus CEO Beris Grey was tight-lipped.

“Mergers and acquisitions advisory is an area in which we want to grow and we have three significant mandates, but these are very confidential transactions as you would appreciate, so we can't really comment on these opportunities until they are closed,” he told Caribbean Business Report.

He noted that Sygnus has been forging its way as a leader in the non-traditional financing solution business through its investment vehicle — Sygnus Credit Investments Limited (SCI), which raised $2.0 billion from local investors earlier this year and has already made four significant investments amounting to $1.3 billion in companies in the energy, manufacturing and distribution sectors.

Grey said that these investments are in keeping with the company's mandate to assist Caribbean medium-sized firms to accelerate growth and business expansion.

The company stated that the rate of investments by SCI is ahead of plan and it continues to see numerous investment opportunities in Jamaica and the region and now has a pipeline of over $3.5 billion.

Consequently, the company said it intends to list SCI and raise more financing via an IPO later this year or early next year.

“Sygnus' fundamental goal is to unlock capital and increase its accessibility for firms, so we are very pleased with the progress that we are making overall and are happy that we are able to use Sygnus Credit Investments to bring some creative financing solutions to our clients,” Grey said.

“Yes, it is true, we intend to come to market to do an IPO for Sygnus Credit Investments within the next three to six months to raise additional capital to meet the growing demand for non-traditional financing that we are seeing in the region. The amount is to be finalised but we are confident that the offer will be well received as we are now able to illustrate to our investors that we, along with a few other firms, are building a new channel through which regional firms can access capital,” Grey added.

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