Shelter Afrique managing director Femi Adewole. FILE PHOTO | NMG
Troubled mortgage lender Shelter Afrique is Thursday expected to
convene a crucial meeting with the holders of a bond it issued in 2013
seeking their permission to reschedule repayments of Sh13 billion debt
it owes 10 development finance institutions.
Shelter
Afrique’s decision to seek a compromise with its financiers comes as it
prepares to meet bondholders’ claims in less than six months. Shelter
Afrique listed Sh5 billion five-year medium-term unsecured notes on the
Nairobi Securities Exchange (NSE) in 2013 with a September 28, 2018
maturity date.
Managing director Femi Adewole earlier
exuded optimism that Shelter Afrique will successfully cater for the
bond repayments despite the seemingly dire financial situation of the
lender.
Failure to get the bond holders’ consent at today’s
extra-ordinary meeting in Nairobi could however plunge the financier
into deeper financial stress amid the looming repayments to note holders
that are due in September.
“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 financier said earlier.
“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 earlier.
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