@BusinessDaily

Shelter Afrique pledges to pay for bond

5 months ago, 15 Apr 18:11

By: Brian Ngugi

Pan-African housing financier Shelter Afrique has reassured bondholders it will make a final tranche of payments in September in a move meant to calm investor fears in the wake of a looming restructuring of debt. Shelter Afrique listed a Sh5 billion five-year medium-term unsecured note on the Nairobi Securities Exchange (NSE) in 2013 with a September 28, 2018 maturity date. On Tuesday, the lender issued a notice seeking permission from holders of the bond to restructure Sh13 billion debt it owes 10 development finance institutions causing anxiety among the bondholders. The housing firm said Friday that it has adequate cash set aside for the bondholder’s, which is ring-fenced against the restructuring. “As a matter of due diligence and procedure on debt restructuring, we must seek a “no objection” approval from Kenyan note-holders on the Sh5 billion bond issued in September 2013. Bondholders remain exempted from any and all matters concerning the restructuring,” the statement said. “We note as well that what is due for final redemption in September 2018 is a balance of Sh824 million due after the Sh925 million March 2018 tranche was paid. We have honoured all previous payments and intend to honour the last tranche as well,” it said. Shelter Afrique further said it has ample liquidity to pay the final tranche of the Bond and there is no default contemplated whatsoever. “This payment has been adequately factored into the cash flows,” the firm added. One tranche of Sh4.23 billion has a coupon rate of 12.75 per cent while the other Sh760 million is priced at 11 per cent. Shelter Afrique owed the 10 financiers a cumulative Sh13 billion (about $129 million) as at October last year.
Read More


Category: business economy news opinion markets corporate lifestyle

Suggested

11 hours ago, 07:00
@BusinessDaily - By: Francis Mureithi
Cytonn opens new office in expansion drive

A leading real estate management company has announced plans to invest millions of shilling in Nakuru. ...

Category: business news
1 day ago, 17:13
@TheEastAfrican - By: Jonathan Kamoga
To cut wage bill, Uganda falls back on 10-year plan for public sector reform

Uganda is scrapping at least 25 agencies and authorities and merging others. ...

Category: topnews news business
1 day ago, 17:13
@TheEastAfrican - By: Ivan R. Mugisha
How Rwanda keeps wages, spending low

Rwanda has kept its wages and salaries below 18 per cent of the budget. ...

Category: topnews news business
1 day ago, 18:35
@TheEastAfrican - By: Bernard Busuulwa
Worrying report of terrorist groups gaining financial muscle in Uganda

Financial flows attributed to terror groups in East Africa clocked $100 million last year. ...

Category: topnews news business
18 hours ago, 00:20
@StandardMedia - By: Otiato Guguyu
How British fund shot itself in the foot in Sh14b ARM venture

Tanzania operation failed to live up to expectations, shackling the firm with debt. ...

Category: business news
18 hours ago, 00:20
@StandardMedia - By: Nzau Musau
Kenya Power switches off poles cartel

Suppliers will no longer need to go through Kewopa, which had exclusive rights. ...

Category: business news

@BusinessDaily

Shelter Afrique pledges to pay for bond

5 months ago, 15 Apr 18:11

By: Brian Ngugi
Pan-African housing financier Shelter Afrique has reassured bondholders it will make a final tranche of payments in September in a move meant to calm investor fears in the wake of a looming restructuring of debt. Shelter Afrique listed a Sh5 billion five-year medium-term unsecured note on the Nairobi Securities Exchange (NSE) in 2013 with a September 28, 2018 maturity date. On Tuesday, the lender issued a notice seeking permission from holders of the bond to restructure Sh13 billion debt it owes 10 development finance institutions causing anxiety among the bondholders. The housing firm said Friday that it has adequate cash set aside for the bondholder’s, which is ring-fenced against the restructuring. “As a matter of due diligence and procedure on debt restructuring, we must seek a “no objection” approval from Kenyan note-holders on the Sh5 billion bond issued in September 2013. Bondholders remain exempted from any and all matters concerning the restructuring,” the statement said. “We note as well that what is due for final redemption in September 2018 is a balance of Sh824 million due after the Sh925 million March 2018 tranche was paid. We have honoured all previous payments and intend to honour the last tranche as well,” it said. Shelter Afrique further said it has ample liquidity to pay the final tranche of the Bond and there is no default contemplated whatsoever. “This payment has been adequately factored into the cash flows,” the firm added. One tranche of Sh4.23 billion has a coupon rate of 12.75 per cent while the other Sh760 million is priced at 11 per cent. Shelter Afrique owed the 10 financiers a cumulative Sh13 billion (about $129 million) as at October last year.
Read More

Category: business economy news opinion markets corporate lifestyle

Suggested

11 hours ago, 07:00
@BusinessDaily - By: Francis Mureithi
Cytonn opens new office in expansion drive

A leading real estate management company has announced plans to invest millions of shilling in Nakuru. ...

Category: business news
1 day ago, 17:13
@TheEastAfrican - By: Jonathan Kamoga
To cut wage bill, Uganda falls back on 10-year plan for public sector reform

Uganda is scrapping at least 25 agencies and authorities and merging others. ...

Category: topnews news business
1 day ago, 17:13
@TheEastAfrican - By: Ivan R. Mugisha
How Rwanda keeps wages, spending low

Rwanda has kept its wages and salaries below 18 per cent of the budget. ...

Category: topnews news business
1 day ago, 18:35
@TheEastAfrican - By: Bernard Busuulwa
Worrying report of terrorist groups gaining financial muscle in Uganda

Financial flows attributed to terror groups in East Africa clocked $100 million last year. ...

Category: topnews news business
18 hours ago, 00:20
@StandardMedia - By: Otiato Guguyu
How British fund shot itself in the foot in Sh14b ARM venture

Tanzania operation failed to live up to expectations, shackling the firm with debt. ...

Category: business news
18 hours ago, 00:20
@StandardMedia - By: Nzau Musau
Kenya Power switches off poles cartel

Suppliers will no longer need to go through Kewopa, which had exclusive rights. ...

Category: business news
Our App