Jamaica Government to Sell Some of Its Shares in Several Infrastructure Entities

Jamaica Information Service post

The Government intends to, over the next 12 months, list on the Jamaica Stock Exchange (JSE) some of its shares in several infrastructure entities.

These entities include South Jamaica Power, TransJamaican Highway, and the Jamaica Public Service Company (JPS).

The listing is expected to be done via a special infrastructure vehicle, which is to be created for the purpose of the stock offer of the government assets.

Making the announcement at the 19th regional JSE Investments and Capital Market Conference at The Jamaica Pegasus hotel in New Kingston, on January 24, Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said the requisite approvals have been received, including from Cabinet.

“This is something we started working on last year and the requisite approvals have been obtained. It’s been approved by Cabinet, and we’re now just working on the execution. As I mentioned, the Government of Jamaica, through various institutions, owns 10 per cent of South Jamaica power, 20 per cent of TransJamaican Highway and 19 per cent of JPS.

“What we would simply do is move those assets into a vehicle that we own 100 per cent and then we would list that vehicle and invite participation in that vehicle from institutions… and we plan, all being well, to have that listing over the next 12 months,” the Minister revealed.

In the meantime, he said the Jamaica Mortgage Bank (JMB) initial public offering on the Jamaica Stock Exchange is also expected over the next 12 months.

“We’ll have more to say about that in due course, because there are a few moving parts as far as that privatisation is concerned and we’ll have the right forum where that can be spelled,” he disclosed.

The JMB was established in 1971 as a private limited liability company, under the Companies Act of 1965 with an authorised share capital of $5 million.

On June 5, 1973, under Act of Parliament No. 16 of 1973, the Bank was converted to a statutory corporation.

The JMB was established with the mandate to finance safe and affordable housing, so that all Jamaicans will have access to homeownership.

It seeks to mobilise financial resources for on-lending to private and public-sector developers and financial institutions, developing an active secondary mortgage market and providing mortgage indemnity insurance.

The conference is being held under the theme “The Drivers of Capital: From Concept to Growth’.

The annual conference examines areas of growth, challenges and advancements that are currently shaping societies and the world economies and critiques how economies and businesses can best manage such rapid changes and capitalise on opportunities for progress through provocative discussions, formal and informal.