Citing “excess demand” for its bond, Mayberry Investments Limited (MIL) announced on Friday, August 30, that it will be upsizing the offer of its 18-month secured bond with a coupon rate of 10.75 per cent.

“…due to excess demand, the board of directors have decided to exercise their option to up-size the invitation (made pursuant to its Bond Prospectus published on Friday, August 16, 2024) to J$2,061,270,000 by making an additional J$687,090,000 in the 10.75 per cent Secured Bonds due 2025 available for subscription,” a notice on the Jamaica Stock Exchange’s website read.

MIL originally valued the corporate bond at $1,374,180,000.00 and invited the public to subscribe at a minimum of $20,000 with increments of $10,000 on offer to those subscribing for more than the minimum.

The investment company said the proceeds from the bond will be used “to repay in full the Mayberry Investments Limited J$1.374b – 10.00% Fr Secured Bond July 2024 – Tranche II aggregating to J$1,374,180,000.00”.

In the bond’s prospectus, MIL Executive Chairman Christopher Berry reasoned that the bond presented an opportunity for small investors.

“It can be difficult for smaller investors to find opportunities to make decent returns on their savings. For instance, real estate has gone on a multi-decade run-up[;] for the small or the young investor that is looking to make their money work for them by investing in real estate, will typically need a minimum investment running well into eight (8) figures. There are of course ways for small investors to obtain exposure to real estate, but they will typically need to either accept lower yields than if they owned the investment property themselves or accept higher risk from a leveraged financing structure,” he said.

With the upsizing of the bond offer, MIL has also advised that the invitation, which was initially scheduled for closure on September 20, 2024, could close earlier, if it chooses to use its discretion.