Centum Real Estate Limited (Centum Re) has formally notified all holders of its outstanding Senior Secured Zero-Coupon Fixed Rate Notes and Senior Secured Zero-Coupon Equity-Linked Notes of the impending repayment.
“Following repayment, the Notes will be delisted from the Fixed income Market Segment of the Nairobl
Securities Exchange,” said Kenneth Mbae, Managing Director of Centum Real Estate.
In a letter sent to investors the company has set the repayment date as Friday, November 24, 2023, marking the final repayment for these financial instruments.
The total amount scheduled for repayment stands at KES 2.95 billion (KES 2,957,900,000).
This sum includes the nominal value of the notes along with accrued interest up to the final principal maturity repayment date of December 16, 2023, as outlined in the Information Memorandum. With, holders of the Equity-Linked Notes will receive an additional 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 will be the Noteholders whose names are listed on the Register of Noteholders as of the close of business on Wednesday, November 22, 2023. To facilitate this process, the register will be closed from November 23, 2023, up to the Final Repayment Date.
In 2020, Centum Real Estate Limited (Centum Re) 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.
The three-year notes, were aimed at funding 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%.
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