Modupe Gbadeyanka
By Modupe Gbadeyanka
Plans are underway to list Mixta Real Estate Plc’s N4.5 billion 17 percent Guaranteed Fixed Rate Bond on the Nigerian Stock Exchange (NSE).
Last month, the FMDQ OTC Securities Exchange (FMDQ) considered for listing of the Mixta Real Estate Plc N4.5 billion Series 1 5-Year 17.00 percent Fixed Rate Senior Guaranteed Bond (the Mixta Bond) under a N30 billion Medium Term Note Programme.
For the NSE listing, the management of Mixta Real Estate Plc has obtained regulatory approval to do this and the bond listing will enable investors to trade on the bond.
It was gathered that the coupon rate of 17 per cent will be paid semi-annually and will be payable in arrears on January 17 and July 17 of each year.
The N4.5 billion bond was issued by Mixta under its N30 billion medium term note programme to refinance existing debts and finance an affordable housing project. The fixed-rate bond with a par value of N100 was issued at a rate of N1,000 per unit. It has a five-year tenor and will be due in 2022.
Mixta used 80 percent of the N4.36 billion net proceeds of the bond issue to refinance loans taken from FBN Merchant Bank and Access Bank.
The firm plans to invest N855 million or 20 percent of the net proceeds in the construction of its Affordable Housing Project, otherwise known as Residence de la Paix (RDP), which is billed for delivery in 2018.
Business Post learnt that the guarantor for the bond issue is a multilateral development finance company called GuarantCo Limited.
