Since 2017 the local bond market has grown significantly with the value of bond issuance transactions doubling from $200 million to $400 million in less than five years.
Minister of Finance Dr. Nigel Clarke made the revelation while speaking at the digital launch of the Jamaica Stock Exchange (JSE) private market on Monday (January 11).
According to Clarke, the securities market grew by 100% between 2017 and 2020 as he noted the increased interest in private securities.
Clarke attributed the heightened interest in this area ,in part, to a reduction in government borrowing which has resulted in surplus funds becoming available from other activities, including private bond issues.
“There was a time when the government would have crowded out the private sector with its voracious appetite for borrowed credit from the local market. That being subdued, we are seeing it has provided the opportunity for those funds to be channeled to the private sector through means such as private bond issues,” said Clarke.
Clarke also pointed to another factor, noting improvements made by other entities, including the central bank, which has facilitated access to funds.
The finance minister also used the occasion to applaud the JSE for the creation of the private market platform describing it as a display of entrepreneurial energy and vision.
The JSE’s latest offering will allow the listing of private bonds and equities securities on the NASDAQ Platform.