The Analysts of Taking Stock with Kalilah Reynolds say that Mayberry Investments’ recent bond offer presents a unique opportunity for regular investors.

Mayberry is seeking to raise $5 billion in capital through a bond, with an option to upsize to $7 billion. 

A bond is a loan from investors to a borrower. In this case, investors would give Mayberry the funds it needs, but for a specific time, and Mayberry will pay interest.  

Mayberry’s bond is being offered in four separate categories with different interest rates and repayment periods. 

The first tranche pays interest of 9.25% per year and matures in 13 months. Tranche two matures in 18 months and has a 10% interest rate, while tranche three matures in 24 months and pays 11% interest, and tranche four matures in 36 months and pays 12% interest.

The minimum purchase amount to participate in this offer is $20,000.

Senior Research Analyst at JN Group, Jahmar Brown, said the minimum purchase is what makes this opportunity so unique.  

“That’s the unique part of this offer, whereas before when corporations would list bonds, the minimum you’d be able to invest is $1 million,” he said.

“This is now open to regular investors. Investors who want fixed-income exposure in their portfolio, will be able to invest in this bond,” he added. 

Mayberry bond vs NCB bond

Business journalist at the Jamaica Observer, David Rose, shared similar sentiments, stating that Mayberry’s bond may have the edge over others because of its relatively low minimum subscription. 

He was specifically referring to NCB Capital Market’s $4.5 billion bond which is offered at 10.5% for 18 months. 

Rose said that preference for each bond will ultimately come down to with individual investors can afford.

“Mayberry minimum purchase is $20,000 followed by $10,000 increments versus NCB’s bond which is a $100,000 minimum subscription,” he said.

He also noted that the NCB bond will likely be listed on the Jamaica Stock Exchange’s private market. Which, he said, will present a barrier for investors who want to exit the investment early. 

According to Mayberry’s bond prospectus, the company intends to apply for the bonds to be listed on the JSE’s bond market. 

“So, while the Mayberry bond will at least have a listing on a recognised exchange which gives it some liquidity, the NCB bond will likely be traded over the counter, meaning you’ll have to have another party to purchase the bond from or sell it to,” he explained. 

Brown also noted that both offers have an early redemption cause, which could see either company choosing to redeem their bonds before the specified maturity date. 

They said that these are all factors to investors must consider before deciding which offer to participate in. 

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