Scotia Investments Jamaica Limited (SIJL) is pleased to announce the successful closing of a US$162 million refinancing transaction for South Jamaica Power Company Limited (SJPC), a prominent independent power producer that operates a 194-megawatt combined cycle gas-fired power plant serving Jamaica’s electricity market.

SIJL acted as Sole Lead Arranger and Bookrunner for the financing, which consisted of a US$107 million loan tranche, US$20 million in bonds, and US$35 million in standby letters of credit. The Bank of Nova Scotia Jamaica Ltd. underwrote the loan tranche and successfully completed syndication prior to closing, demonstrating robust institutional support.

SIJL structured the transaction to significantly extend SJPC’s debt maturity profile utilising an 8-year loan and a 10-year bond. This strategic restructuring optimises SJPC’s long-term capital structure and establishes a highly efficient debt framework.

The refinancing successfully migrated SJPC to a simplified corporate finance-style debt structure. This modernisation delivers meaningful commercial benefits, including a reduction in the company’s weighted average cost of debt, an extended debt tenor, and enhanced long-term working capital flexibility.

The transaction attracted immense capital interest, with both the loan and bond tranches being significantly oversubscribed by 1.49x and 1.5x, respectively. This strong level of market demand underscores deep institutional investor confidence in SJPC’s operations, stable contracted cash flow profile, and essential role in supporting Jamaica’s national energy infrastructure.

“This refinancing marks a major milestone for SJPC as it modernizes our debt structure and provides our business with greater operational flexibility,” said Leisa Batiste-Whyte, General Manager, South Jamaica Power Company. “By transitioning to a streamlined corporate finance model and extending our debt maturity profile, we have significantly strengthened our balance sheet. This ensures that our Company can focus completely on its core mission: maintaining world-class efficiency, maximising grid stability, and delivering reliable energy infrastructure to power Jamaica’s long-term economic growth.”

“We are proud to have supported SJPC in achieving a successful refinancing that strengthens its capital structure and supports the continued delivery of reliable energy infrastructure in Jamaica,” said Sarah Cumming, Scotiabank Director & Head of Corporate Finance Caribbean. “The transaction reflects our commitment to delivering innovative financing solutions that meet the evolving needs of our clients and contribute to long-term economic development across the region.”

SJPC’s power plant operates under a long-term power purchase agreement and plays a critical role in Jamaica’s generation mix, representing approximately 25% of the island’s net generation capacity. 

The successful execution of the refinancing further supports the company’s financial flexibility and long-term operating objectives.