advertisement
Market News

Real People gets nod to delay bond payment

Real People
Real People is required to pay interest on the loans so as not to completely default. FILE PHOTO | NMG 

Credit-only subsidiary of South African micro-financier Real People will now delay paying Sh1.26 billion bonds for up to eight years after it got approval from the investors.

The lender said yesterday it had met the investors of the Sh267.1 million and Sh1.04 billion notes who agreed to wait for payments till July 24, 2028, subject to getting a strategic investor.

“At a meeting held in February 28, the note holders by means of extraordinary resolutions resolved that the maturity date for the notes due on February 28 and August 3 be extended to February 28, 2021,” the firm said in a public notice on Monday.

The firm hopes the extension will alleviate the debt and interest burden.

It said in the notice the latest extension is to allow the firm to look for a strategic investor to buy a stake in the firm and help settle the debt in the next eight years — over four tranches in 2022, 2024, 2026 and 2028.

advertisement

“Subject to the issuer securing an agreement to raise equity capital with an investor whose identity shall be approved by noteholders holding 75 percent of the notes on or before February 28, 2021, the maturity dates for the notes due on February 28, 2020 and the notes due on August 3, 2020 be extended to a final date of August 3, 2028,” Real People said.

The firm had earlier declared insolvency and said it was headed for default on its three-year Sh267.1 million medium-term note that matured in 2018.

Its ability to meet payments for the five-year Sh1.04 billion note that matured early this year was also in question.

Real People is required to pay interest on the loans so as not to completely default.

“The interest shall be determined and paid on the dates which have been identified based on the trust deed and consistent with how the interest is currently paid and determined,” Real People said.

“The notes shall be redeemed at their face value in four equal tranches that is 25 percent of the face value on 1 August 2022, 29 July 2024, 27 July 2026 and 24 July 2028.”

advertisement