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Financial News

Oct 2009 Financial News

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Oct 21, 2009

Access Financial Services successfully raised its targetted $100 million within two days of opening the share issue that saw the company give up 20 per cent of its shares for listing on the Jamaica Stock Exchange Junior Market.

The share issue of approximately 5.47 million shares at a price of $18.34 was opened last Wednesday and closed last Friday, ahead of the original close date of yesterday.

It is not yet clear who were the main takers of the stock but the shares were allocated on a first-come, first-serve basis.

The company anticipates listing on the Junior market by early next month.

Marcus James, CEO of Access Financial and the microlender's largest shareholder, said the raised capita would be used to expand his company's portfolio of loans.

"We want to be in a position to expand our portfolio of micro loans to Jamaica's small business sector and personal loans to working Jamaicans," said James in a press statement released yesterday.

Access' primary business, which involves lending money to consumers and small businesses and which the company plans to expand, is highly profitable. For instance, during the six months to June 30, 2009, the firm was able to secure a net interest margin of 86 per cent, that is, the cost of loans which yielded $128 million in interest income for Access was only $18 million, so the company was able to make $112 million in net interest income.

The microlender also made another $17 million from money services, which includes the operations of cambios, Bill Express, Western Union, and FX Trader services at its branches in Port Henderson, May Pen and Savanna-la-Mar. It also has cambio operations at its head office in Kingston.

Ultimately, the company made $23.4 million net profit during the six months ending June 30, 2009.


Source:
Jamaica Observer
Wednesday, October 21, 2009

http://www.jamaicaobserver.com/magazines/Business/html/20091020T200000-0500_162216_OBS_ACCESS_FULLY_SUBSCRIBED_WITHIN_TWO_DAYS.asp#