Durrant Pate/Contributor

Mayberry Jamaican Equities(MJE) is returning to the local capital market seeking upwards of $3.37 billion through a bond offer, which opened today, Friday, May 10, and closing a month later on June 7.

The bond offer is for J$2.25 billion with an option to up-size to J$3.37 billion and will be issued in three different tranches of J$750 million each for 13 months, 26 months and 36 months. The 13-month offer will attract interest of 9.25 per cent, 10 per cent for the 26 month offer and 10.50 per cent for the 36-months security.

Interest will be due and payable on December 30, March 30, June 30, and September 30 each year. The minimum investments are J$20,000 with additional increments in multiples of J$10,000.

It is expected that the secured bonds will be admitted to listing on the Bond Market of the Jamaica Stock Exchange within 21 days of the closing date of the offer. MJE has explained that the amount therefore required to participate in this invitation is substantially lower than the minimum amount typically required for an investor to directly purchase a debt security.

USE OF PROCEEDS

MJE intends to use the proceeds from this invitation to repay existing indebtedness, to expand its investment portfolio and to fund the Interest Reserve Account.

MJE also intends to pay the expenses associated with the Invitation out of the proceeds, which it estimates will not exceed J$66 million exclusive of General Consumption Tax.

The company is an international business company that is resident in Saint Lucia and accordingly interest payable will not be subject to withholding tax in Saint Lucia.

If the secured bonds are listed on the Bond Market of the JSE as anticipated, the transfer of the secured bonds will be exempt from both Transfer Tax and Stamp Duty.

MJE is an investment holding company that has two main business lines. The first is making long term investments in listed companies.

Among its more valuable long term holdings is in Supreme Ventures of which MJE owns 18.55 per cent, which is valued as at April 26, 2024 at approximately J$11.5 billion.

The company also has long term holdings in Caribbean Producers (Jamaica), owning approximately 20.08 per cent, which is valued as at April 26, 2024 at approximately J$1.96 billion.

The second line of business is active trading involving opportunistic stock market purchases and sales where it actively seeks to realise profits over a short to medium term horizon.