Shelter Afrique now kicks off search for debt-fixing director

Shelter Afrique has kicked off the search for an independent director in charge of investment analysis, finance and debt restructuring and capital raising from within its 44 countries.

The search by the troubled pan-African housing financier comes as it readies to meet claims by its bondholders in about nine months.

Shelter Afrique listed a Sh5 billion five-year medium-term unsecured notes on the Nairobi Securities Exchange (NSE) in 2013 and the bond matures on September 28.

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.

Acting managing director Femi Adewole did not respond to the Business Daily queries on whether the organisation is sufficiently capitalised to cater for the repayments.

In a notice on dailies, the firm specified that applicants for the independent debt restructuring director position will be expected to provide “technical, financial and other independent expertise” to its board.

READ: Moody’s withdraws Shelter Afrique rating

“The independent director shall serve for a minimum of 3 years renewable only once. (He/she is expected) to reduce potential conflicts between the management and wider interest of the company and shareholders,” said the firm.

Shelter Afrique turned to the 44 member states who are shareholders late last year for Sh9.2 billion to steady its finances after turbulence.

The cash-strapped financier said mid-October it had by then received written commitments from 11 shareholders to inject additional capital of up to $60 million last year, less than half the requirement.

Ratings agency Moody’s last October withdrew the Caa1 credit rating for Shelter Afrique, nearly a year after it lost its top credit rating.