In a move signaling strategic recalibration, Sygnus Credit Investments Limited (SCI) is preparing to engage its preference shareholders with a proposal that would significantly reshape two of its outstanding instruments. The company intends to extend the maturity of its Class C and Class D preference shares by three years to December 2028, while also trimming their dividend yields—an approach positioned as both cost-efficient and operationally leaner.
Rather than issuing new preference shares, SCI is opting to amend the existing terms—eliminating the procedural burdens of reissuance, fresh applications, and regulatory overhead. This streamlined strategy is projected to yield annual savings of approximately J$10.4 million and US$83,900, capitalizing on a softer interest rate climate since the original December 2023 issuance.
The proposed revisions would see Class C yields decline from 10.50% to 9.85% (JMD), and Class D from 8.00% to 7.50% (USD), aligning with prevailing monetary benchmarks. With Bank of Jamaica’s policy rate dipping to 5.75% and GOJ Treasury Bills averaging just over 5.3%, SCI’s updated terms are positioned to remain attractive, while significantly enhancing internal financial agility.
This proposal will be put to a vote at a shareholder meeting scheduled for late August. If approved, it will reinforce Sygnus’ intent to manage capital structure with surgical precision—minimizing disruptions while securing more favorable liability terms.
The broader financial context supports SCI’s move. The company recorded robust performance for the nine months ending March 2025: income climbed 17% to US$12.36 million, while net profit surged 60% to US$6.97 million. Assets expanded 15% to US$228.41 million, with over US$214 million deployed in investments. Credit ratings remain stable with a reaffirmed ‘adequate’ standing.
Sygnus joins a growing cadre of issuers reshaping their preference share portfolios. Recent activity across the capital markets reflects a clear trend: locking in long-term capital while adjusting to yield compression. From JMMB’s extensive preference share extensions to PBS, Eppley, and VM Investments’ strategic redemptions and reissuances, the playbook is shifting toward proactive liability management.
For Sygnus, this isn’t just an interest rate play—it’s a tactical consolidation of investor relations, capital efficiency, and long-term solvency. The firm continues to leverage its market positioning to evolve with discipline and foresight, navigating the financial environment with one eye on growth and the other on resilience.
