分类： business

TransJamaican Highway Limited (TJH) has commenced the partial redemption of its cumulative redeemable preference shares as part of its strategic growth initiatives. The company recently redeemed 5% of the principal amount of its 2.7 billion preference shares, equivalent to 135 million shares or US$1.35 million, based on a US$0.01 par value. This redemption, executed on July 14, coincided with the quarterly dividend payment. TJH’s preference shares offer an 8.0% dividend yield. The Jamaica Central Securities Depository (JCSD) facilitated the redemption process, ensuring pro-rata distribution among shareholders. Despite receiving a query, TJH reported no objections to the transaction. The company has since aligned its redemption schedule with the original terms, adjusting the maximum optional redemption amount to 15% by January 30, 2026, with quarterly redemptions tied to dividend payments. TJH initially issued these preference shares in January 2020, raising US$27 million. The shares, listed at $1.41 in September 2020, are set to mature by January 2028. TJH retains the right to redeem up to 20% of the shares after the sixth anniversary of issuance. The company’s Q2 2024 report highlighted a carrying value of US$23.88 million for the preference shares, with US$22.26 million classified as non-current. Early redemptions free up cash for ordinary shareholders, with TJH announcing a $0.1292 dividend totaling $1.62 billion, payable on October 24. This marks a 35% increase from 2024, reflecting TJH’s robust financial performance. Additionally, TJH updated its dividend payment structure to accommodate USD shareholders. The company is set to launch Phase 1C of Highway 2000 East-West in October, projected to generate US$9.5 million in revenue. TJH’s 2024 revenue reached US$82.82 million, driven by increased toll volumes, with net profit rising 28% to US$17.78 million. The company also adjusted toll rates and streamlined T-Tag acquisition processes, enhancing customer convenience. TJH’s asset base stood at US$295.44 million, with total equity closing at US$72.99 million. Despite a 13% decline in JMD share price, TJH remains focused on its expansion and operational efficiency.

Jamaica is strategically positioning itself to tap into the lucrative luxury travel market, particularly targeting high-spending tourists from the Gulf Cooperation Council (GCC) countries. The GCC, established in 1981, comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). These nations are renowned for their affluent travelers who seek premium experiences, including five-star accommodations, halal-certified dining, and culturally sensitive services. With Saudi Arabia leading in population size, followed by the UAE and Oman, the GCC market represents a significant opportunity for Jamaica’s tourism sector. To capitalize on this, Jamaica is enhancing its offerings to meet the specific needs of GCC travelers, such as Arabic-speaking concierge services, luxury transfers, and privacy-focused amenities. A recent codeshare agreement between Emirates and Condor Airlines has further facilitated connectivity between Dubai, Frankfurt, and Montego Bay, paving the way for increased Middle Eastern visitation. Vijay D’Souza, trade director at Buzz Travel Marketing and regional representative for the Jamaica Tourist Board, emphasized the untapped potential of the GCC market, noting that word-of-mouth recommendations play a crucial role in attracting these travelers. Cortez Gordon, founder of Salaam Jamaica Tourism Network, highlighted the importance of aligning Jamaica’s tourism offerings with Islamic values, including halal-certified cuisine, prayer facilities, and culturally sensitive services. Gordon expressed optimism that these efforts could lead to significant economic benefits, including job creation and market diversification, while positioning Jamaica as a globally inclusive, Muslim-friendly destination.

The Bank of Jamaica (BOJ) has decided to maintain its key interest rate at 5.75%, defying market expectations for a rate cut. This decision, announced by Governor Richard Byles, reflects the central bank’s focus on medium-term inflation risks and robust domestic demand, despite recent low inflation figures. The Monetary Policy Committee (MPC) unanimously agreed to hold the rate, emphasizing the importance of core inflation, which remains at 4.2%, within the target range. This core figure, which excludes volatile food and fuel prices, indicates persistent underlying price pressures, particularly in the services sector. The BOJ attributes the low headline inflation of 1.2% to temporary factors such as increased agricultural production post-Hurricane Beryl and reduced public transport fare impacts. The bank’s hawkish stance aims to manage domestic demand and anchor inflation expectations, supported by a tight labor market and elevated wage growth. The economy is projected to grow between 1% and 3% in fiscal year 2025/26, driven by expansions in Agriculture, Mining, and Tourism. External risks, including potential U.S. tariff increases and geopolitical tensions, also informed the BOJ’s cautious approach. The next policy decision is scheduled for November 20, 2025, allowing time for reassessment of economic data.