Billionaire Michael Lee-Chin’s firm to issue $300 million international bond

Key Points

• NCB Financial Group plans to raise $300 million via bond issuance to repay debt and support corporate needs, led by billionaire Michael Lee-Chin.
• Fitch rates the bond B+, S&P assigns B-, reflecting cautious optimism amid refinancing and $69.4 million in cost-cutting efforts.
• NCBFG boosted customer deposits from $2.83 billion to $4.94 billion and streamlined assets for sustainable growth and stability.

NCB Financial Group (NCBFG), Jamaica’s largest banking institution, is looking to raise $300 million from Wall Street this week to help meet key financial obligations. Led by billionaire Michael Lee-Chin, NCBFG plans to use the funds to redeem a portion of its outstanding notes and support general corporate needs.

In a statement, NCBFG said the pricing details of the bond, including the interest rate and tenor, will be disclosed on June 11. Citigroup will serve as the global coordinator and sole bookrunner for the offering, while NCB Capital Markets Limited and NCB Capital Markets (Cayman) Limited will act as co-managers.

Fitch rates NCBFG bond at B+

American credit rating agency Fitch Ratings has assigned the upcoming senior unsecured bond an expected B+ rating, the same as NCBFG’s long-term issuer default rating reaffirmed in March. Fitch noted that the final rating will depend on receiving documentation that matches previously submitted information.

Meanwhile, S&P Global Ratings gave the proposed notes a B- rating and maintains a B- long-term and B short-term credit rating for NCBFG, last updated in November 2024.

Michael Lee-Chin’s empire tightens spending

Founded in 1977, NCBFG has grown into Jamaica’s leading financial services group, with holdings that include National Commercial Bank Jamaica and Guardian Holdings Limited. Its executive chairman, billionaire Michael Lee-Chin, has been a driving force behind the company’s long-term strategy. Forbes estimates his net worth at over $1.1 billion.

In recent years, the group has made a concerted effort to strengthen its financial footing. That turnaround included cutting operating costs by JCA$3 billion ($18.9 million) and trimming consolidated expenses by over JCA$11 billion ($69.4 million) over the past year.

NCBFG streamlines for sustainable growth

Debt refinancing and a more stable balance sheet have helped NCBFG navigate inflation and rising interest rates across the Caribbean. Customer deposits climbed significantly, from JCA$447.9 billion ($2.83 billion) to JCA$784 billion ($4.94 billion), a sign of growing trust from clients and investors.

The company has also taken steps to focus on its core business, shedding non-essential assets and improving governance. These changes, the group says, are aimed at ensuring long-term stability while aligning with international standards.