This archive report was first published on 11 June 2020.
On June 11, 2020, Centum Investment Plc made history by repaying its Sh6.6 billion corporate public bond, a five-year debt that was worth Sh6.6 billion.
The repayment, which includes accrued interest and a variable return to holders of the Equity Linked Note component, marks a significant milestone in the company's debt reduction efforts.
Centum's CEO, James Mworia, attributed the success to the company's Centum 4.0 Strategy, which aims to strengthen the company's balance sheet and enhance liquidity.
"I am pleased that 14 months into the Centum 4.0 strategy period and despite the difficult economic environment which has been exacerbated by the economic shocks arising from the Covid-19 pandemic, we have delivered on this critical strategic objective," Mworia said.
Centum's debt reduction efforts come on the heels of the settlement of a Sh7.8 billion dollar-denominated loan in September last year.
The company's goal is to build balance sheet resilience and release funds that were previously spent on debt interest costs, allowing for re-investment and future dividend enhancement.
As the global economy recovers from the pandemic, Centum's strong liquidity and balance sheet position have put it in a strong position to take advantage of emerging investment opportunities.
