Investors at Amana Capital Limited will continue to feel the pinch after the Capital Markets Authority (CMA) granted a 28-day grace period to the firm in order for it to realize strategies to improve its liquidity position to meet redemption.
“The Capital Markets Authority (CMA) has given a no-objection to a 28-day moratorium to enable the fund manager, Amana Capital Limited (ACL), work with its Trustee, NatBank Trustee & Investment Services Limited, to improve its liquidity position to meet redemption obligations to unit holders with investments in the Amana Shilling Fund,” CMA stated in a statement.
Amana has recently been struggling after the trust lost Sh275 million in short-term loans and up to 20 pc of its assets in the now collapsed Nakumatt holdings. The firm was among a group of investors that loaned Nakumatt with Sh4 billion in 2016.
CMA says after engaging with the Board and Management of Amana as well as the Trustee and the Custodian, the 28-day freeze was the most reasonable solution to the firm’s liquidity challenges.
Unitholders will not be able to redeem cash until the 28 days are over. Amana’s shilling fund will now have remained frozen for over two years.
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