Mixta Real Estate Plc has obtained regulatory approval to list it’s N4.5 billion 17 percent Guaranteed Fixed Rate Bond on the Nigerian Stock Exchange (NSE). The bond listing will pave for investors to trade on the bond.
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.
The coupon rate of 17 percent will be paid semi-annually and will be payable in arrears on January 17 and July 17 of each year.
GuarantCo Limited, a multilateral development finance company, is the guarantor for the bond issue. GuarantCo was founded by the development agencies and governments of the United Kingdom, The Netherlands, Sweden, and Switzerland, as well as the Private Infrastructure Development Group (PIDG).
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 real estate company will be investing 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.
The RDP Nigeria was modeled after the successfully executed RDP development by Mixta Senegal, and it is the first affordable housing development in Mixta Nigeria’s portfolio. On completion, RDP will consist of more than 2,500 units of one, two and three-bedroom flats delivered as ready-to-move-in. The homes will be developed in four multi-phases and released in line with market demand.
Mixta commenced operations in February 2006 as a real estate investment fund management company promoted by Asset & Resource Management Company (ARM) Limited. In 2007, the fund was converted to a property company, ARM Properties Plc, as a result of operational and tax limitations encountered due to current legislation governing real estate investment funds in Nigeria.
In 2015, ARM acquired Mixta Africa, an Africa-focused large scale property development company headquartered in Spain with subsidiary operations in several countries across North and sub-Saharan Africa. The combination of ARM Properties and Mixta Africa gave birth to Mixta Real Estate Plc.
Source: The Nation