REG - Ceiba Investments Ld - Trading Update - Consultation with Bondholders

Ceiba InvestmentsAnnouncement

05/02/2026 07:02

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RNS Number : 7758R  Ceiba Investments Limited  05 February 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("UK MAR"). ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

CEIBA INVESTMENTS LIMITED

(the "Company")

 

(TICKER: CBA, ISIN: GG00BFMDJH11)

Legal Entity Identifier: 213800XGY151JV5B1E88

 

TRADING UPDATE

CONSULTATION WITH BONDHOLDERS

 

The Board of Directors of CEIBA Investments Limited (the "Company") wishes to
provide an update on the severe headwinds that Cuba, and the Company, are
facing since the Company's last update provided within its Half-Yearly Report
published on 29 September 2025.

 

Since the inauguration of President Donald Trump in 2025, the United States
has intensified its hard-line policy towards Cuba, characterized by a
strengthened economic embargo, intensified sanctions, and restrictions on
travel and financial transactions, aimed at pressuring the Cuban government.
More recently, the Trump administration has further intensified its policy by
restricting energy supplies by blocking oil supplies from Venezuela and
threatening tariffs on any country that provides oil to the island.

 

The Company believes these actions are much more consequential than previous
restrictions placed on Cuba by the United States and, unless relaxed, are
potentially catastrophic for Cuba's infrastructure and economy.

 

Although at the present time it appears that the Trump administration is
seeking a negotiated settlement with the Cuban government, no agreement has
yet been reached, and it is not clear whether discussions between the parties
are ongoing.

 

This results in a very high degree of uncertainty regarding the continuing
availability of fuel, electricity and other basic inputs necessary for the
normal operation of the Cuban economy.  Consequently, this has a material
impact on the prospects of the Cuban tourism industry in 2026 and therefore on
the Company's ability to operate its assets on a profitable basis in the short
term.

 

During FY25 and into the current financial year, the operational results and
performance of all of the five hotels and the mixed-use retail and office
complex in which the Company is invested have remained relatively positive and
profitable.  Nevertheless, over the period the aggregate income from the
Company's operations has been substantially lower than anticipated which, when
combined with the projected cash flows expected to be received in Q1 2026,
means that the Company  does not anticipate being able to satisfy repayment
of the full amount of the upcoming €5m second principal tranche (Segment B)
plus interest of its existing bond instrument (the "Bond Instrument"), due on
31 March 2026.

 

In addition, the Company's Board and Management believe that in the present
circumstances, owing to the very high degree of uncertainty in the near term,
the Company should maintain sufficient cash reserves to safeguard the
operations of the Company for a period of up to one year.

 

Consultation with Bondholders

 

During February 2026, in order to avoid a potential event of default under the
terms of Bond Instrument, the Company intends to consult with Bondholders with
a formal proposal to amend some of the terms of the Bond Instrument,
including, inter alia, to:  i) extend the term of the Bond Instrument by 12
months by deferring each of the four remaining segments (B, C, D and E) by
that additional period; ii) allow the Company to issue new ordinary shares
representing up to 10% of current issued shares; and iii) allow the Company to
sell part of its assets provided that the proceeds thereof are applied towards
the repayment of the Bond Instrument.

 

The Company will provide a further update on the consultation as and when
appropriate.

 

About the Company:

 

CEIBA Investments Limited is a listed closed-end fund dedicated to investing
in Cuba, with interests in the commercial and tourism real estate sectors. Its
interests include holdings in 2,235 hotel rooms of the Melia Habana (Havana),
Melia Las Americas, Melia Varadero, Sol Palmeras (Varadero) and Melia Trinidad
Península (Trinidad) hotels, and the 56,000m(2) Miramar Trade Center office
and retail complex in Havana. As at 30 June 2025, the unaudited net asset
value of the Company was USD125,700,785 (31 December 2024: USD 129,968,866),
which amount took into consideration deferred management fees payable to
Aberdeen in the total amount of USD2,503,950 and the indebtedness to
Bondholders of €20 million.

 

 

For further information, please contact:

 

Sebastiaan Berger
 
Via NSM Funds Limited

 

Singer Capital Markets
 
Tel: +44 (0)20 7496 3000

James Maxwell / Patrick Weaver (Corporate Finance)

Sam Geatrex (Sales)

 

NSM Funds Limited
 
Tel: +44(0)1481 743030

 

 

 

 

END OF ANNOUNCEMENT

 

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