in 2024 on the JSE’s Bond Market
Mayberry Jamaican Equities Limited on September 3, 2024, celebrated the listing of not one, but of three tranches of bonds, which successfully raised $3.37B. The Jamaica Stock Exchange (JSE) has had four bond listings since the beginning of the year with Mayberry’s bonds representing the largest total raised and listed on the JSE’s Bond Market since the start of the year. To cater for the demand, the bonds were upsized from $750M each, due to over subscription. Mayberry’s bonds came to the market in May 2024 and the offer closed in June 2024. The bonds have been listed on the JSE’s Bond Market since July 30, 2024.
Managing Director of the Jamaica Stock Exchange Dr. Marlene Street-Forrest congratulated Mayberry for effectively utilizing the market to raise capital for production. “I have been consistent with my commendation to the Mayberry’ team who have been able to read the market well and have offered investors securities that are attractive to them. With the listing of these bonds, Mayberry is in fact developing the bond market and the understanding and appetite of investors that there are several ways to build great portfolios during whatever market cycle a securities market is experiencing.”
“I wish to remind all listed companies that there is an opportunity to raise more capital on the market, whether through rights issues, bonds or preference shares. You have captive shareholders who, if they believe in the Company, as is clearly demonstrated by the Mayberry Group, would see the advantage of investing further in the company. This is crucial not only for Mayberry but for all other issuers who will be able to tap into an investor-ready group of people for capital to fuel investments and development’” said Dr. Street Forrest.
Dr Street Forrest added, “As we seek to expand our reach and cater to all types of investors, I am calling on Mayberry and other brokers to assist with the development of the market. We will be launching the green bond market shortly and we call on your participation as here is another way to attract domestic and foreign capital. Overall, I am inviting other companies, large or small, to take advantage of the stock market. Let us utilize all the platforms and facilities that are available to chart a way towards growth and prosperity.”
In his comments, Mr. Gary Peart, Chief Executive Office, Mayberry Investments Limited, told the audience that Mayberry was able to reshape the Bond market, so that instead of a minimum purchase of one million dollars usually offered to investors, they can now participate with a minimum purchase of $20,000. He explained that this action is to assist the investor to be able to buy into these bonds, to get a better interest rate than with a savings account. He explained that a savings account gives 1% return before the tax is withdrawn, while the bond pays a 10% return. Mr. Peart added that investors should look at what gives them greater return. In the case of the equities market, investors could put aside a small amount each month to buy stock or alternatively use the savings in their bank accounts to buy the stock of the bank. They will have the dividend every Quarter paid by the Bank plus the stock appreciation.
Mr. Peart spoke about his personal stock market experience: “My first investment in the stock market was $2,000. I bought a stock and held it for eight (8) years and when I sold the stock, it was $800,000. That is the power of the Jamaica Stock Exchange. If you want to get rich, just take $1,000 a month and buy some stocks. In 10-20 years, you will join the crowd of happy persons who wonder what they will use the money to buy.”
Mr. Dan Theoc, SVP of Investment Banking, Mayberry Investments Limited said, “Mayberry Investments is the proud broker for this transaction, to bring yet another solution to the Jamaican market. And we look forward to the future. We will be back sooner than you think. We look forward to further developing the market. We feel confident about this as BoJ has started to reduce interest rates, which is favourable to the Jamaica Stock Exchange.”
Mr. Theoc thanked the brokers which have partnered with Mayberry over the years to develop the Bond Market, with special mention given to ‘VM, JMMB and Sagicor”. He encouraged them to continue to support Bond Market transactions. He also thanked Mayberry’s staff and the leadership for their “creativity and ingenuity in coming up with these transactions”. He concluded with a promise to clients, “We promise to keep coming up with creative solutions to help them.”
Mr. Neville Ellis
Marketing & Communications Manager
Telephone: 876-967-3271 / 876-322-0984
