Sygnus Credit Investments Limited (SCI) is set to ask holders of its Class C (J$) and Class D (US$) cumulative redeemable preference shares to roll their investment out to December 2028 while accepting leaner coupons—9.85 per cent in Jamaican dollars and 7.50 per cent in US dollars.
The proposal, to be voted on at a special meeting in Kingston on 26 August, bypasses the usual “redeem-and-reissue” ritual. By simply amending the existing terms, SCI removes the paperwork, listing fees and brokerage charges tied to a fresh offer. Management estimates annual interest savings of roughly J$10.4 million and US$83,900—capital that can be redeployed into its expanding private-credit portfolio.
Behind the move is a markedly softer rate environment than when the notes were sold in December 2023. Jamaica’s policy rate has eased from 7.00 per cent to 5.75 per cent, Treasury-bill yields have slipped below 5.4 per cent, and the three-year US Treasury has fallen from 4.80 per cent to 3.90 per cent. SCI argues that maintaining double-digit returns in such conditions would be an over-payment.
The two tranches—originally part of a US$50.37 million fund-raise—carry face values of J$1.6 billion (approx. US$9.9 million) and US$16.78 million. Extending them for three years at slimmer coupons keeps investors onboard while trimming SCI’s weighted cost of capital.
Sygnus is not alone. JMMB Group recently reset four series of preference shares, Productive Business Solutions retired a 9.75 per cent note and re-entered the market at 8.25 per cent, and Eppley swapped a 6.00 per cent issue for paper paying 11.50 per cent. The trend underscores issuers’ willingness to renegotiate rather than redeem outright—balancing investor yield expectations with leaner corporate funding costs.
Operationally, SCI continues to scale. For the nine months to 31 March 2025:
- Total investment income advanced 17 per cent to US$12.36 million.
- Net profit surged 60 per cent to US$6.97 million, already topping the prior full-year result.
- Assets climbed 15 per cent to US$228.41 million, powered by a US$214.63 million deployment book.
Creditwise, CariCRIS has reaffirmed SCI at CariBBB- / jmBBB+, classifying its risk profile as “adequate.”
In December 2024 the firm added perpetual Class H (10.00 per cent) and Class I (8.00 per cent) instruments—raising another US$32.97 million without a stated maturity, signalling appetite for capital that can ride multiple economic cycles.
If the August vote passes, SCI will lock in lower funding for three more years, sharpen its margin, and sidestep the friction of a full refinancing—an incremental, but meaningful, victory for cost discipline in a cooling rate climate.
