Three other tranches still being sold

Durrant Pate/Contributor

Jamaican investment and brokerage company, Mayberry has the fourth tranche of its J$5-billion bond issue, which was opened on December 2.

The IV tranche was closed earlier than the January 6, 2023 slated closure because of an oversubscription of applications. The 36-month IV tranche carried an interest rate of 12 per cent per annum and was for J$1.25 billion but received application in excess of this amount last Friday (December 23).

The bond issue is being executed in four tranches each offering subscriptions amounting to $1.25 million maturing in 13, 18, 24 and 36 months at interest rate of 9.26 per cent,10 per cent, 11 per cent and 12 per cent. Mayberry is seeking to raise an initial amount of J$5 billion with the option to up-size the amount to J$7 billion.

Minimum investment and allocation

The minimum investment is J$20,000 with additional increments in multiples of J$10,000. The bonds will be allocated on a first-come-first-served basis. In the event of oversubscription, Mayberry has reserved the right (after up-sizing) to allocate the secured bonds on a pro rata or other basis as it deems fit.

In any tranche of the bond issue, Mayberry reserves the right to take up less than J$1.25 billion in any of the four tranches. The company will make an application to the Jamaica Stock Exchange for the bonds to be admitted on its bond market.

If the application is successful, it is anticipated that the bonds will be admitted to trading within 21 days of the closing date of the bond issue. Mayberry intends to use the proceeds to expand its portfolio of securities loans and for general corporate purposes.

The first interest payment will be on March 30, 2023. Thereafter, interest will accrue on from June 30, September 30, December 30 and March 30 each year.Interest payments to Jamaican resident bondholders will be subject to tax at 25 per cent.