Centum Real Estate made an early payment of its KES3 billion corporate bond, underscoring the company’s strong financial position.
Investors in the corporate bond received payment on Friday, November 24, about three weeks to the bond’s maturity date of December 16, 2023.
The bond holders received full interest payment to the date of maturity.
Centum Re Managing Director, Kenneth Mbae, said the bond repayment is funded from internally generated cash.
“This payment underscores our strong liquidity position, and we appreciate our investors” added Mr Mbae.
Since the bond raise in 2020, Centum Re has developed a healthy pipeline and pre-sold homes with signed contracts of KES 20.3B and collected KES 11.7B from customer deposits.
The early payment comes a month after Global Credit Rating upgraded Centum Re’s credit rating citing strong cash flows.
GCR affirmed stable outlook Centum Real Estate’s national scale, long and short-term issuer ratings of BBB+(KE) and A2(KE) respectively, as well as the rating to its corporate bond. “It confirms that the credit rating upgrade was accurate,” said Mr Mbae.
The company is the leading developer of mixed-use urban nodes in the region, with large mixed-use developments in Nairobi, Kilifi and Entebbe in Uganda.
Centum Real Estate’s track record assures its investors of quality, value for money, timely handover of projects and a return on their investment.
Centum Re is a fully owned subsidiary of the Nairobi Securities Exchange listed Centum Investment Company Plc.
The Group CEO Dr James Mworia said the bond payment would make it easier for Centum Re to attract funding in the future as it affirms its strong fundamentals.
“We have built from scratch a multi-billion-shilling enterprise that has even attracted international investors from the likes of IFC, the World Bank’s private sector lending arm,” said Dr Mworia.
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