Mar 2013 Financial News

GraceKennedy Approves Acceptance of GOJ Private Exchange Offer

Mar 27, 2013

KINGSTON, JAMAICA, March 26, 2013 - The Board of GraceKennedy Limited has approved the participation by its subsidiaries, First Global Bank Limited ("FGB") and First Global Financial Services Limited ("FGFS") in Government of Jamaica's Private Exchange Offer made on March 22, 2013. This will involve the exchange of a number of GOJ Bonds for lower coupon bonds with different tenures.

The participation in this offer will have a short term adverse impact on profitability, however, this will not materially affect the financial position of the Group, nor will it affect FGB and FGFS continuing to meet their regulatory ratios and requirements. GraceKennedy Group CEO, Mr. Don Wehby, in commenting on the decision to participate in the Private Exchange Offer indicated that "This was considered to be in the best long-term interests of the shareholders of GraceKennedy Limited, based on the understanding that the signing of the country's agreement with the International Monetary Fund ("IMF") was contingent upon the full take up of this Private Exchange Offer by the GraceKennedy Group and other participating companies. It is important that the country takes this opportunity to execute on the economic medium term strategies to ensure that the agreed targets with the IMF are met. It is anticipated that this will allow for a return to the stability of the financial markets and provide the platform for the future growth of the economy."

Contact: Simone Clarke Cooper
GraceKennedy Limited
73 Harbour Street
Kingston, Jamaica
Tel: (876) 922-3440


Source:
The Trinidad and Tobago Stock Exchange Limited
Wednesday March 27, 2013