This archive report was first published on 2 December 2019.
On December 2, 2019, Centum Investment announced plans to use part of the money received from the sale of residential apartments and land to pay off Sh6 billion corporate bond set to mature in June 2020.
According to CEO James Mworia, the company intended to retire the bond early but has decided to let it mature, given it has paid off other borrowings amounting to Sh10 billion in the last few months.
Centum will earn up to Sh6.1 billion from selling residential houses and Sh13.2 billion from the land sale, with part of the money expected to come in before the deadline for paying off the bond.
"We have a number of transactions in the real estate portfolio that will release more liquidity. We also have active land sale negotiations worth Sh13.2 billion, which will support repaying the bond," Mworia said.
Centum borrowed the money in 2015 to fund its investments in financial services, energy, and real estate. Its profits have grown during the period, hitting Sh6.79 billion in the half-year of 2019/20 financial year from Sh2.07 billion.
The company has sold 827 of the 1,316 residential units across its mixed-use developments located in Nairobi, Kilifi, and Uganda. The units boast of a pre-sell level of 63 percent.
