Mayberry closes $13.1M bond offer early after $19.1M in applications

What's the deal? Mayberry Investments Limited, a Jamaican brokerage and investment firm, closed its public bond offering early after receiving applications worth more than J$3 billion (roughly $19.1M) — far exceeding its upsized target of J$2.06 billion ($13.1M). The board exercised its right to shut the offer on May 2, more than a week before the scheduled May 11 closing date. The offer had opened on April 13.

Why now? Jamaica's high interest rate environment has hammered the local stock market, making fixed-income instruments an attractive hedge. Mayberry said it will use the proceeds to repay in full its existing 10.75% secured bonds due this year — essentially refinancing at what investors clearly see as favourable terms.

The company initially sought J$2.06 billion but upsized the offering earlier in the week after demand surged. Applications still exceeded the revised target by roughly 50%.

What could go wrong? Oversubscription means many applicants won't receive their full allotments. Refunds for unallotted portions will be processed after the basis of allotment is published on the Jamaica Stock Exchange within the next seven business days.

Mayberry's financial covenants cap leverage at four times capital. At year-end 2024, the firm's bonds stood at roughly J$6.3 billion against capital of J$6.1 billion — within covenant limits, but without much headroom.

The signal: Strong demand for a corporate bond offering in a tough equity market underscores how Jamaican investors are rotating into fixed income amid persistent high rates. It also signals confidence in Mayberry's creditworthiness, despite a leveraged balance sheet. For the broader Caribbean capital markets, oversubscribed debt deals suggest appetite for yield instruments could keep growing as long as rates remain elevated.

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