UPDATED: GraceKennedy to accept NDX offer

The Board of Directors of GraceKennedy Limited has approved the full participation of the group and its subsidiaries in the National Debt Exchange offer (NDX), the conglomerate said Tuesday.

The debt swap seeks to replace J$860 billion worth of GOJ domestic bonds with 25 NDX bonds with lower coupon rates and longer tenures. The offer closes Thursday and will be settled on Friday.

GK’s participation will include First Global Bank Limited, First Global Financial Services Limited and Jamaica International Insurance Company Limited.

“The Board discussed the requirements and implications of the NDX which was noted as an important step towards the transformation of the Jamaican economy,” said the conglomerate in a one page statement.

“While it is expected that this will have a short term adverse impact on profitability it will not materially affect the financial position of the Group. The Board considered participation in the NDX to be in the best long-term interests of the shareholders of GraceKennedy Limited.”

business@gleanerjm.com