GraceKennedy has shed light on its decision to approve the participation of its two financial subsidiaries in the Government’s Private Exchange Offer, confirming on Tuesday that First Global Bank and First Global Financial Services were involved in the transaction on Friday. It involved the exchange of a number of bonds for new instruments with different tenures.
While acknowledging this development will have a short-term impact on profitability, Grace said it will neither affect the financial position of the Group, nor its subsidiaries in meeting their regulatory ratios and requirements.
Don Wehby, Grace’s CEO, said the decision was made to participate in the Private Exchange Offer as it was considered to be in the long-term interest of the company's shareholders.
He said this was based on the understanding that the signing of Jamaica's agreement with the IMF was contingent on the full take-up of the Private Exchange Offer by Grace and other participating companies.