Closure date for the offer extended to January 20

Durrant Pate/Contributor

Mayberry Investments has upsized its J$5-billion bond issue by a further $2 billion, due to excess demand from the local investing public.

Mayberry went to market with the bond issue on December 2, 2022, seeking to raise an initial amount of J$5 billion with the option to up-size the amount to J$7 billion, which is now being done. As a result of the bond issue being upsized, Mayberry has decided to extend the closing date to January 20.

The offer was originally slated to close on January 6, at 4:30 pm. The bond issue is being executed in four tranches with 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, respectively.

Early closure of Tranche IV

Tranche IV was closed earlier than its January 6, 2023 closure date, due to an oversubscription of applications. By December 23, 2022, the 36-month tranche IV had already received applications in excess of the J$1.25 billion being sought.

Mayberry 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.

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. Mayberry intends to use the proceeds to expand its portfolio of securities loans and for general corporate purposes.

Interest payments

Interest will be calculated and accrued from day to day (after as well as before any judgment) but prorated on the basis of a 360-day year and paid quarterly on each Interest Payment Date. The first interest payment date 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.