Overview
Senior secured notes of the concessionaire operating Norman Manley International Airport — Jamaica's capital-city airport. Smaller catchment than MBJ but strategically important to the island. Concession structure is analogous to MOAIRJ.
Quasi-Sovereign · USD · Jamaica
KINAIR 6.75% Dec 2036
PAC Kingston Airport Ltd. (NMIA Concessionaire)
Buy
Key Strengths
- 01 Concession monopoly on Kingston's primary international gateway
- 02 Diaspora-driven traffic base (US, UK, Canada) is more resilient than pure leisure tourism
- 03 USD revenue / USD debt structural FX match
- 04 Long-dated concession extends well past the 2036 maturity
Key Risks
- 01 Smaller passenger volumes than MBJ — thinner cash flow cushion
- 02 Less tourism diversification; more exposed to Jamaica macro and emigration trends
- 03 Lower rating and smaller issue size translate to thinner secondary market liquidity
- 04 Hurricane and climate risk; aging terminal capex needs
GKCM View Buy
Higher-yielding sibling to MOAIRJ. The 6.75% coupon out to 2036 offers a credible spread over MOAIRJ for the extra year of duration and credit step-down. Suitable for yield-hungry clients comfortable with smaller-issue secondary market liquidity. Position size accordingly.
Disclosure
This research note is prepared by GK Capital Management for informational purposes only and does not constitute an offer or solicitation to buy or sell any security. Indicative metrics shown are subject to change without notice. Credit ratings are sourced from public rating agency reports as of the publication date and may have moved since. Past performance is not indicative of future results. Investors should consult their advisor before transacting in any fixed income security.