Shelter Afrique settles its commercial debts, eyes regional bonds

KENYA – Shelter Afrique, a Pan-African housing development financier, has fully paid commercial debts owed to eight lenders, giving the company the leverage to underwrite new debt. In 2018, Shelter Afrique signed a Debt Restructuring Agreement with the eight lenders – six DFIs and two commercial banks to restructure its debt with a new 5 – Year tenor to run from June 2019 to June 2024. The US$186 million including accrued interest owed to African Development Bank, Agence Française de Developpement, Commercial Bank of Africa, European Investment Bank, German KFW,…

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Investment firm Centum to sell shares in TRDC and retire US$37m short-term debt

KENYA – Investment firm Centum is seeking to sell part of its shareholding in the Two Rivers Development Company (TRDC) Ltd to retire a US$37.03 million short-term debt whose repayment is taking a toll on its finances. Chief Executive Officer James Mworia told The East African that the proportion of shares to be surrendered to the new investors will be determined by the current valuation of the Two Rivers Development project whose initial investment cost is estimated at US$231 million. “The restructuring of the TRDC balance sheet involves adding equity…

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Kenya raises US$1b in oversubscribed Eurobond sale

KENYA – The government of Kenya raised US$1 billion in its first Eurobond sale in two years as the East African nation balances between the need to fund its economic recovery and lower its debt burden. The 12-year bonds, priced to yield 6.3%, received more than US$5.4 billion in orders following a three-day virtual roadshow, the National Treasury said in a statement. “The oversubscription was a sign of strong global investor confidence on Kenya’s economy and medium-term economic prospects,” Treasury Secretary Ukur Yatani said in the statement. The government forecasts economic…

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Eurobond holders reject Zambia’s US$3b payment deferral request

ZAMBIA – Zambia’s US$3 billion Eurobond holders have rejected a request from the Southern Africa’s nation government to defer interest payments, risking it to become Africa’s first COVID-19 era sovereign default. The government of Zambia had requested its Eurobond holders to grant it a deferral of interest payments until April 2021, as it struggled with the dual burdens of fighting the pandemic and a dwindling economy. However, The Zambia External Bondholder Committee, which holds more than 40% across all Zambia’s bonds and a blocking stake in each issue, had already…

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Petra Diamonds to dispose its assets in Botswana to reduce its debt

BOTSWANA – Petra Diamonds Limited, owner of the South African mine, has announced that it has entered into an agreement to dispose of its exploration assets in Botswana due to debt increment. Petra is set to dispose 100% of its holding in Sekaka Diamonds Exploration Limited to Botswana Diamonds PLC for a total consideration of US$300,000 and a 5% royalty on future diamond revenues should any of the prospects within the exploration licenses be brought into production. The assets of Sekaka Diamonds include the Company’s three existing Prospecting Licenses in…

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Tougher times ahead as appetite for loans pushes 40% of African countries into debt crisis

AFRICA – The Managing Director of the International Monetary Fund, Kristalina Georgieva, has said that 40 percent of African countries are in debt distress. Africa’s public debt has not yet reached the proportions that triggered the Highly Indebted Poor Country (HIPC) initiative, the concerns regarding Africa’s present debt is the fact that it has risen sharply in a very short space of time more than doubling what it was five years ago. Another worrying trend is, unlike previously when most of the debt was owed to multilateral institutions like the…

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