Vice President of Investments at Mayberry Investments, Dan Theoc, says the company’s new bond is already oversubscribed.
Speaking on Taking Stock this week, Theoc said they’re going for the option to upsize.
“We’re doing $2.3 billion and I’m happy to say we’ve hit that number… and we have the right to upsize, so we’re going to go for the upsize now.”
The upsize option is for an additional J$1.15 billion.
The offer is scheduled to close on February 28; however, due to the demand, it may close early.
The funds raised will be used to repay a previous bond issued by the company.
Investors can buy in for a minimum of J$20,000 (about US$127) and then in J$10,000 increments.
The interest rate is 10.25% per annum, with the first interest payment scheduled for March 31,2025.
“Two years ago, we sorta pioneered the idea of doing a Bond IPO, which is to make fixed instrument investments available to regular retail investors,” said Theoc.
He explained that the minimum investment for a bond is usually around J$1 million. However, they wanted to give retail investors the opportunity to earn more than they would from a regular savings account.
“We know there’s like a trillion dollars of deposits out there with the various financial institutions, and interest rates being paid on these savings accounts are ridiculously low, 1-2%.”
The bond matures in 24 months, at which time investors will receive their principal investment back, as well as their final interest payment.
What are bonds?
Bonds are used by governments and companies to raise money by borrowing from investors. Investors buy in and they are paid interest over the period of the bond.
Mayberry’s bond pays interest quarterly. The amount of interest paid to you depends on the amount you’ve invested. Once the bond matures, investors receive their original investment back.
Bonds are typically considered to be a lower risk investment than stocks, because they are backed by secured assets. The returns also offer more interest than you would earn in a savings account and helps to hedge against inflation.
Bonds provide a predictable income stream, which is an advantage for investors looking for steady cash flow.
They can be a part of a well balanced portfolio, but make sure to do your research on offers.
Click HERE to learn more about the Mayberry Bond, and to apply.