HF bond­hold­ers set for Sh192 mil­lion Oc­to­ber in­ter­est pay­ment

Business Daily (Kenya) - - CORPORATE NEWS - Pa­trick Alushula palushula@ke.na­tion­media.com In to­tal, it made bor­row­ings val­ued at Sh11.54 bil­lion

Mort­gage fi­nancier HF Group is set to pay Sh192.9 mil­lion in­ter­est on the Sh3 bil­lion cor­po­rate bond is­sued about six years ago.

The group an­nounced Fri­day that the in­ter­est will be paid mid this month, a move with a po­ten­tial to lift the bond mar­ket con­fi­dence from the ashes of Chase Bank, Im­pe­rial Bank and

Naku­matt de­faults.

“We ad­vise that the 12th pay- ment of HFC bond tranche II will be paid on 15 Oc­to­ber 2018 to bond­hold­ers whose names ap­pear on the bond reg­is­ter as at close of busi­ness on Mon­day 1 Oc­to­ber,” said HF.

The an­nounce­ment comes amid the group post­ing 88.1 per cent de­cline in 2018 half year net prof­its to Sh6.8 mil­lion fol­lowed by lay­ing off 36 em­ploy­ees last month. Its man- ag­ing direc­tor Frank Ireri is also out on med­i­cal leave, with his term end­ing in March next year.

The 2012 bond, with a coupon rate of 13 per cent, is set to ma­ture on Oc­to­ber 14 next year. Other Nairobi Se­cu­ri­ties Ex­change bond set for next year’s ma­tu­rity in­clude that of Con­sol­i­dated Bank of Kenya, I & M Bank, Bri­tam, Ken­gen and Real Peo­ple.

Last year, HFC re­ceived two short-term notes from NIC Bank and Co-op­er­a­tive Bank of Kenya val­ued at Sh800 mil­lion. The obli­ga­tions had grown to Sh517.3 mil­lion on the NIC loan and Sh309.6 mil­lion for Co-op Bank as at close of last year.

It also had a Sh7 bil­lion cor­po­rate bond re­pay­ment in Oc­to­ber. In to­tal, it made bor­row­ings val­ued at Sh11.54 bil­lion, ac­cord­ing to in­for­ma­tion con­tained in its 2017 an­nual re­port. Top lenders were Euro­pean In­vest­ment Bank (Sh3.78 bil­lion), Sym­bi­otics SA (Sh1.81 bil­lion), Ghana In­ter­na­tional Bank (Sh1.55 bil­lion) and Shel­ter Afrique at Sh1.06 bil­lion.

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