The Capital Markets Authority (CMA) has summoned directors of troubled housing lender Shelter Afrique to appear before the regulator on Monday morning to assess the financial health of the company which has listed a Sh5 billion bond on the Nairobi bourse.
The date with the capital markets regulator comes on the eve of Shelter Afrique’s shareholders crisis meeting set for Tuesday to discuss fresh plans to raise capital for the cash-strapped mortgage lender.
Housing and PS Aidah Munano, who represents Kenya on the Shelter Afrique board, confirmed the meeting.
“The reason why we have been asked to appear before CMA is to discuss and confirm that we can meet our bond responsibilities,” she told the Business Daily in a statement.
“The company is in a position to meet this responsibility. This has been provided for very specifically.”
Kenyan taxpayers control 10.63 per cent of Shelter Afrique, which is owned by a total of 44 African countries together with the African Development Bank and African Reinsurance.
Shelter Afrique listed a Sh5 billion five-year medium term unsecured notes at the Nairobi Securities Exchange in 2013. The bond matures on September 28, 2018.
One tranche of Sh4.23 billion has a coupon rate of 12.75 per cent while the other Sh760 million note is priced at 11 per cent.
The housing financier is set to run out of liquidity by February 17, according to a notice circulated to shareholders ahead of the Tuesday meeting, underlining the dire situation at the company which is also battling allegations of sub-prime lending and accounts manipulation.