Durrant Pate/Contributor

Mayberry Jamaican Equities (MJE) has closed its extended and upsized J$1.5 billion bond offer one week ahead of schedule due to an oversubscription.

The two-tranche bond offer was initially set for J$1 billion, closing on September 12, but was extended to September 26 and upsized to J$1.5 billion. MJE is announcing that its directors have chosen to close the invitation last Thursday (September 18) at 4:30 pm, due to an oversubscription. 

The basis of allotment of the MJE bonds will be published on the Jamaica Stock Exchange’s (JSE) website. MJE thanked all applicants who participated in this offering and congratulated all MJE partners and team members who were crucial in making this bond offering a success.

Bond details

Tranche I offers an 8.75 per cent interest rate for 13 months, while tranche II will offer a 9.25 per cent interest rate for 23 months. Each tranche has a size of J$750 million. 

The bond is secured by 115 million ordinary shares of Supreme Ventures Limited (SVL), MJE’s largest asset. These shares were worth over J$2.28 billion, which translated to a collateral coverage ratio of 1.52 times. Interest will be paid to bondholders every quarter, with the first payment scheduled for September 30.

The minimum amount to subscribe to either tranche is J$20,000 with increments of J$10,000. The expenses associated with the offer should not exceed J$40 million.

MJE raised J$3.375 billion in June 2024 through three tranches with interest rates ranging from 9.25 per cent to 10.50 per cent to partially repay a margin loan facility to Mayberry Investments Limited (MIL), another subsidiary of Mayberry Group Limited, and expand its investment portfolio. 

MJE’s business involves holding long-term portfolio investments and active trading of Jamaican stocks on the JSE, with its income deriving largely from dividends from stocks, interest income from repurchase agreements, and realised gains on equity securities.