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.
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.
