Troubled mortgage lender Shelter Afrique is Thursday expected to convene a crucial meeting with the holders of a bond it issued in 2013 seeking their permission to reschedule repayments of Sh13 billion debt it owes 10 development finance institutions.
Shelter Afrique’s decision to seek a compromise with its financiers comes as it prepares to meet bondholders’ claims in less than six months. Shelter Afrique listed Sh5 billion five-year medium-term unsecured notes on the Nairobi Securities Exchange (NSE) in 2013 with a September 28, 2018 maturity date.
Managing director Femi Adewole earlier exuded optimism that Shelter Afrique will successfully cater for the bond repayments despite the seemingly dire financial situation of the lender.
Failure to get the bond holders’ consent at today’s extra-ordinary meeting in Nairobi could however plunge the financier into deeper financial stress amid the looming repayments to note holders that are due in September.
“As a matter of due diligence and procedure on debt restructuring, we must seek a “no objection” approval from Kenyan note-holders on the Sh5 billion bond issued in September 2013. Bondholders remain exempted from any and all matters concerning the restructuring,” the financier said earlier.
“We note as well that what is due for final redemption in September 2018 is a balance of Sh824 million due after the Sh925 million March 2018 tranche was paid. We have honoured all previous payments and intend to honour the last tranche as well,” it said earlier.