Centum Real Estate Limited (Centum Re) has officially informed holders of its outstanding Senior Secured Zero-Coupon Fixed Rate Notes and Senior Secured Zero-Coupon Equity-Linked Notes about the upcoming repayment.
Delisting from the Nairobi Securities Exchange
Kenneth Mbae, Managing Director of Centum Real Estate, stated, “Following repayment, the Notes will be delisted from the Fixed Income Market Segment of the Nairobi Securities Exchange.”
Repayment Date and Amount
In a letter addressed to investors, the company has designated Friday, November 24, 2023, as the repayment date, marking the conclusive repayment for these financial instruments.
The total repayment amount is KES 2.95 billion (KES 2,957,900,000).
Breakdown of Repayment Sum
This sum encompasses the nominal value of the notes and accrued interest up to the final principal maturity repayment date of December 16, 2023, as detailed in the Information Memorandum.
Equity-Linked Notes holders will additionally receive a Variable Return component.
The repayment will be distributed either in cash or through the application of note proceeds towards the acquisition of real estate units.
Beneficiaries and Register Closure
Noteholders listed on the Register of Noteholders as of the close of business on Wednesday, November 22, 2023, will be the beneficiaries.
The register will be closed from November 23, 2023, up to the Final Repayment Date to facilitate this process.
Background and Approval
In 2020, Centum Real Estate Limited obtained approval from the Capital Markets Authority (CMA) to issue KES 4 billion in secured zero-coupon and secured zero-coupon equity-linked Medium-Term Notes, with a green shoe option of KES 2 billion.
Purpose of Notes
The three-year notes were intended to fund real estate development by the company. The senior secured zero-coupon notes carried an indicative interest rate of 12.5 percent, while the senior secured zero-coupon equity-linked notes offered an indicative interest rate of 12 percent, with an additional 200 basis points contingent on meeting a minimum project internal rate of return of 20%.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]