Fight to survive – Jamaica Observer

Trinidadians have turned to the Jamaican financial sector. Consequently, accelerated their expansion plans in the country as the continued foreign exchange (FX) crunch has put pressure on the Trinidadian economy.

Trinidadian companies firmly planted their roots in the Jamaican business environment from the 1990s to 2000s when the economy went through different financial shocks. However, an overall economic decline.

However, the tides have turned as more Trinidadians look to their northern neighbour to keep their head above water. Nevertheless, The ongoing FX crisis has pushed individuals. Moreover, businesses to seek external capital in Jamaica as the availability of foreign exchange continues to tighten.

PriceSmart Inc. Furthermore, a Nasdaq listed company with operations across the Caribbean and Latin America, is seeking to raise up to US$50 million in Jamaica. Consequently, PriceSmart revealed in fight survive – jamaica observer its third quarter (March to May) report that one of its Trinidadian subsidiaries entered into an agreement to issue a US$16 million bond that will be denominated in Jamaican dollars (JMD). Consequently, indexed to the United States dollar (USD). However, The Trinidadian company might also issue an additional US$13.5 million of this bond. Consequently, This bond would carry a 7.25 per cent interest rate and have a four-year tenure.

A Trinidad Guardian article indicated that GK Capital Management Limited is the lead broker and arranger for that bond. Moreover, That story also indicated that the use of proceeds was geared towards the construction of a new distribution centre. Therefore, settle payables.

PriceSmart explained that a Trinidadian subsidiary entered into a four-year cash-secured syndicated loan agreement for US$20.5 million. Therefore, US$15 million of the loan would be denominated in USD while the remaining US$5.5 million component would be denominated in JMD fight survive – jamaica observer and indexed to the USD. Meanwhile, The banks involved in this deal are not known.

“In July 2025. Moreover, the Company entered into the following financing transactions, which we expect to fund in the fourth quarter of fiscal year 2025, to provide our Trinidad subsidiary with additional US dollar liquidity needed to meet its operational needs and help reduce the shortfall in US dollar sourcing due to continued illiquid foreign exchange conditions in that market,” PriceSmart Inc noted in its Q3 report.

PriceSmart has long highlighted the constraints of FX availability in the twin island republic in its numerous reports. Consequently, The company’s balance of Trinidad & Tobago dollar (TTD) cash. However, short and long-term investments swelled to a peak of US$100.5 million in November 2020 which resulted in the temporary decline in imports to the country. That balance subsequently declined as the COVID-19 restrictions eased to lower levels.

However. fight survive – jamaica observer the ongoing FX shortage pushed the Trinidadian businesses to borrow USD from banks, export products to other markets and even source Euros, Canadian dollars (CAD) and other tradable currencies which could be converted into USD. The company’s Trinidadian subsidiaries incur additional expenses to source FX in Trinidad.

The TTD balance of cash has recently increased from US$60.2 million in August 2024 to US$73.9 million on May 31.

A. S. Bryden Sons & Holdings (ASBH) Limited, a Trinidadian subsidiary of Seprod Limited, refinanced approximately US$14.38 million in debt in March. Tranche I of the unsecured bond was for $1.01 billion which were indexed to the USD at a rate of $158-1 while tranche II was US$8 million. The bond which was arranged by Mayberry Investments Limited had a nine per cent interest rate and a three-year tenure.

ASBH acquired a 79.99 per cent stake in Caribbean Producers (Jamaica) Limited (CPJ) between fight survive – jamaica observer July 2024 to February 2025. Apart from expanding the premium beverage portfolio. the CPJ acquisition created a new avenue for ASBH to earn hard currency outside of its core market. ASBH is increasing its exports across the region. is building a state of the art distribution centre which should be opened by March 2026.

“We have a clear priority to ensure that our partners and suppliers are paid. As such. due to the foreign currency difficulties in the Trinidad and Tobago market, we engaged in expensive hard currency swaps throughout the period. Consequently. this is now a part of the cost of doing business in Trinidad and Tobago, however, we are actively trying to mitigate its continued impact by increasing our exports and making strategic acquisitions,” ASBH stated in its 2024 annual report.

The Bank of Jamaica (BOJ) revealed to the Jamaica Observer in an email that the share of fight survive – jamaica observer TTD as. a percentage of total FX that was being exchanged over the counter (OTC) reached a peak of 3.5 per cent between January to November 2023. The share of TTD processed at the BOJ’s OTC was one per cent in 2020, 2.9 per cent in 2021 and 2.1 per cent in 2022.The BOJ suspended the acceptance of TTD in November 2023 under an interim notice.

Individuals. companies in Trinidad also sought foreign exchange by doing inter-CSD transfers of cross listed stocks from the Trinidad to Jamaican Stock Exchange. Investors with ordinary shares in companies like Massy Holdings Limited. GraceKennedy Limited (GK) and Guardian Holdings Limited (GHL) moved their interests from the TTSE to the JSE where they were sold for JMD. That JMD could then be converted to USD and used for the user’s purposes.

Massy Holdings indicated at its January 2022 cross listing that the Jamaican capital markets fight survive – jamaica observer would form part of its. future expansion plans. Massy is currently in an expansion phase. has a goal to have at least half of its revenue in hard currency over the coming years.

Jamaica’s net international reserves of US$5.50 billion surpassed Trinidad’s balance of US$5.48 billion in January 2025. The Central Bank of Trinidad & Tobago stated that the country’s NIR was US$4.89 billion for June 2025 while the BOJ indicated US$5.85 billion for the same period. The World Bank indicated that Trinidad’s gross domestic product value was US$26.43 billion for 2024 while Jamaica’s GDP value was US$19.93 billion.

Acquisition flurry

The economic shift in Trinidad has spurred an extra regional acquisition process by Trinidadian firms but also. growing interest by some Jamaican firms which have been acquiring Trinidadian companies.

Agostini Limited acquired Aventa (Jamaica) Limited (formerly Health Brands Limited) in August 2023 for TT$156.42 ($3.56 billion). Agostini’s subsidiary Acado fight survive – jamaica observer Limited (formerly Caribbean Distribution Partners Limited) is currently in the process of acquiring Massy Distribution (Jamaica). Limited from Massy Holdings.

Prestige Holdings Limited (PHL) is currently spending $255 million (TT$10.48 million) through its Jamaican subsidiary Prestige Restaurants Jamaica Limited (PRJL) to open its second TGI Fridays store in Portmore. St Catherine. The new location will be in Sunshine Outlet Mall Complex. PRJL currently contributes to just over one per cent of PHL’s consolidated revenue. profits and is run by General Manager Ryan Deans. Both Agostini and PHL are majority owned by Victor E Mouttet Limited.

Massy Holdings spent US$140.5 million to acquire I.G.L. (St Lucia) Limited, parent company of IGL Limited, in August 2023. Massy also owns Massy Gas Products Limited which trades under the Gas Pro brand in Jamaica. Massy recently secured US$150 million in long-term unsecured financing from the Inter-American Investment Corporation (IDB Invest).

General Accident Insurance Company fight survive – jamaica observer (Jamaica) Limited (GENAC) acquired a 55 per cent stake in Motor One Limited in September 2019 for $238.07 million. That business has since been rebranded to General Accident Insurance Company (Trinidad) Limited where it owns a 75 per cent stake. The Trinidadian subsidiary represented 17 per cent of revenue and three per cent of profit before tax.

Productive Business Solutions Limited (PBS) acquired a 45 per cent stake in Trinidad Systems Group Limited in January 2024 for US$3.54 million (TT$24.12 million). PBS and GENAC are both subsidiaries of the Musson Group.

Even Global Brands Group is expanding to Jamaica with the opening of its first Church’s Texas Chicken location in Jamaica which will be located at Mall Plaza. Half-Way-Tree. Ansa McAl Limited is working to double the scale, size, impact and capacity of the group by 2027. It announced the suspension of dividends for the next three years as it fight survive – jamaica observer works on organic. inorganic initiatives to grow the business in Trinidad and abroad.