Mayberry Jamaican Equities (MJE) has decided to upsize its J$2.25 billion bond offer to J$3.37 billion based on excess demand from investors.

In addition, MJE has also decided to extend the closing date of the bond offer to June 21.

The bond offer opened on May 10 and was initially slated to close on June 7.

The bond offer is structured in three different tranches of J$750 million each for 13 months, 26 months and 36 months—attracting an interest of 9.25 per cent, 10 per cent and 10.50 per cent respectively.

Interest will be due and payable on December 30, March 30, June 30, and September 30 each year. The minimum investment is 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. 

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

If the secured bonds are listed on the JSE bond market as anticipated, the transfer of the secured bonds will be exempt from both transfer tax and stamp duty.

MJE has two main business lines. The first is making long-term investments in listed companies. Among its more valuable long-term holdings is Supreme Ventures of which MJE owns 18.55 per cent, which is valued as of April 26, 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, 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 realize profits over a short to medium-term horizon.