In a major financial intervention, NCB Financial Group has structured a comprehensive J$15.1 billion (US$96 million) financing package to stabilize Jamaica Broilers Group (JBG) amid strategic restructuring efforts. The funding arrangement aims to fortify JBG’s domestic operations while addressing significant challenges within its U.S. segment.
The financing solution comprises J$6.4 billion in direct loans from National Commercial Bank Jamaica Limited (NCBJ) and J$8.7 billion in multi-tranche bonds arranged by NCB Capital Markets Limited, with maturities extending up to 14 years. Additionally, NCB facilitated negotiations with domestic creditors to reset financial covenants and modify collateral security arrangements.
Angus P Young, CEO of NCBCM and Executive Vice President of Corporate and Investment Banking at NCBJ, emphasized the strategic importance of the intervention: “JBG represents a cornerstone of Jamaica’s agricultural sector with critical implications for national food security and employment. Our support reflects confidence in the company’s core Jamaican operations and the corrective measures currently being implemented.”
The financial restructuring follows JBG’s disclosure of accounting irregularities within its U.S. operations that negatively affected cash flows, profitability, and consolidated financial results. These issues included inventory valuation adjustments, biological asset miscalculations, goodwill impairments, and previously unrecorded liabilities.
Despite these challenges, JBG’s Jamaican operations demonstrated remarkable resilience, generating J$2.5 billion in net profit and maintaining an equity position of J$16 billion for the fiscal year ending May 31, 2025.
Christopher Levy, Group President and CEO of Jamaica Broilers Group, outlined the recovery strategy: “We are executing a disciplined turnaround plan prioritizing governance, oversight, and operational efficiency. This includes leadership enhancements, financial control restoration, and direct Jamaican-based supervision of U.S. operations.”
The comprehensive financing package is expected to provide JBG with necessary stability to implement recovery measures, strengthen internal controls, and return to sustainable performance levels while supporting continued growth of its domestic business.