Mayberry Jamaican Equities Limited (MJE), a fund run by brokerage firm Mayberry Investments Limited, has launched its first secured debt fund aimed at raising $2.2 billion.
The transaction will be MJE's first secured debt since its listings on the Jamaica Stock Exchange earlier this year. The debt, which has a tenure of five years at a rate of 7.25 per cent, has been contracted to Sagicor Bank Jamaica Limited.
Primarily a portfolio of listed Jamaica equities on the local stock exchange, MJE, formerly Mayberry West Indies Ltd was launched as a means of enhancing shareholder value in addition to carrying out such transaction or series of transactions as the Mayberry's board deemed fit.
During its launch, Mayberry noted that while the company has the ability to borrow, expectations are that it would not borrow more than 20 per cent of the value of its portfolio.
Just released data shows that for the nine-month period ended September 30, 2018, MJE reported total comprehensive income of $6.76 billion.
MJE's surpassing of the $6-billion mark in total comprehensive income reflects an increase in the company's net revenue for the three-month period up to September $634.8 million over the corresponding period last year, to reach $657.8 million.
“This increase was driven by a 100 per cent increase in unrealised gain on investment revaluation, in addition to dividend income increasing by 138.4 per cent or J$40.3 million.
Dividend income earned resulted mainly from holdings in Supreme Ventures Limited, Caribbean Producers (Jamaica) Limited, Jamaica Money Market Brokers Limited and Blue Power Group Limited,” MJE said in a statement to shareholders.
Total assets of the MJE also grew to $18.4 billion compared to $7.5 billion for the same quarter 2017, representing a $10.9 billion increase or 146.7 per cent in the company's asset base due mainly to the increased value of quoted equities, particularly, Lasco Financial Services Limited, Caribbean Producers (Jamaica) Limited, Blue Power Group Limited, Iron Rock Insurance Company Limited, and Supreme Ventures Limited.
MJE's total liabilities increased over third quarter 2017 by $2.74 billion to $2.8 billion, or 45.8 times; led by an increase in accounts payables of $444 million and the addition of a corporate loan note of $2.2 billion during the period.
The company boasted on its capital base which continues to trend upwards, resulting from higher profitability, with retained earnings moving from $3.8 billion to $5.6 billion and fair value reserves of $8.6 billion, up from $2.1 billion.