REG - Grit Real Estate Inc - Sustainability linked debt refinancing

Grit Real Estate IncomeAnnouncement

01/07/2022 07:00

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RNS Number : 9274Q  Grit Real Estate Income Group  01 July 2022

 GRIT REAL ESTATE INCOME GROUP LIMITED

 (Registered in Guernsey)

 (Registration number: 68739)

 LSE share code: GR1T

 SEM share code: DEL.N0000

 ISIN: GG00BMDHST63

 LEI: 21380084LCGHJRS8CN05

 ("Grit" or the "Company" and, together with its subsidiaries, the "Group")

 

 

SUSTAINABILITY LINKED DEBT REFINANCING AND SYNDICATION CURRENTLY UNDERWAY

 

 

The board of Directors (the "Board") of Grit Real Estate Income Group Limited,
a leading pan-African real estate company, focused on investing in, developing
and actively managing a diversified portfolio of assets underpinned by
predominantly US$ and Euro denominated long-term leases with high quality
multi-national tenants, today provides an update on the Group's targeted
sustainability linked debt refinancing and syndication, which is currently
underway and progressing well.

 

The Group's multi-bank approach continues to be an effective strategy,
especially given the current global debt market uncertainty. As at 31 December
2021, the Group had a total of US$409.2 million in outstanding debt, made up
of US$362.9 million reported and US$46.2 million held within its associates.
The Group is pleased to announce the appointment of Standard Bank of South
Africa  ("SBSA") as the Sole Mandated Lead Arranger over a US$306 million
multi-jurisdictional debt syndication covering Grit's assets and debt
facilities in Mozambique, Zambia, Ghana and Senegal.

 

The rationale and key points in relation to the Group's planned debt
syndication and refinancing include:

1.   Grit is pursuing a refinance of the Group's existing debt exposures
into a single sustainability linked facility, with the aim of streamlining the
Group's loan management process and linking of the facility to the Group's ESG
targets, including carbon emission reduction and gender equality. This is
expected to create a scalable future solution and will extend the Group's
overall debt tenor;

2.   Grit has appointed SBSA as the Sole Mandated Lead Arranger to implement
the refinancing of up to c.US$306 million of existing facilities through the
multi-bank syndication, which is to include a number of the Group's current
senior lenders and potentially the introduction of new lenders, many of whom
have already indicated their support;

3.   SBSA previously led the successful US$140 million syndication of the
Group's Mozambique facilities in October 2019. SBSA is the largest lender to
Grit at present and has approved c.US$129 million in facility capacity for
this refinance;

4.   The transaction is targeted to close by 30 September 2022 with a long
stop date of 31 December 2022;

5.   In support of this exercise, Bank of China has approved an extension of
their existing Zambian facilities, which had a contractual maturity of 19
April 2022, to 31st December 2022, to allow for the long-term refinancing in
this syndication;

6.   Excluded from the syndication are debt maturities on State Bank of
Mauritius facilities  totalling US$57.0 million (which have already been
extended to 31 March 2025), AnfaPlace Mall which is held as available for sale
and the Kenyan asset facilities which are to be separately refinanced; and

7.   The syndication and tenor extension is expected to result in an
increase to the Group's weighted average debt expiry profile increasing to
over 3.5 years by the targeted 30 September 2022 close date.

The Group currently has interest rate collars over US$100 million of notional
debt exposure in place, and is considering upsizing and rolling all, or part
of these, in the debt refinance.

 

The targeted debt restructuring is expected to bring enhanced scale,
diversification and tenor and optimal funding costs to the Group's broader
debt portfolio. Further updates will be provided in due course.

 

By Order of the Board

 

1 July 2022

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Grit Real Estate Income Group Limited
 Bronwyn Knight, Chief Executive Officer                           +230 269 7090
 Darren Veenhuis, Chief Strategy Officer and Investor Relations    +44 779 512 3402

 Maitland/AMO - Communications Adviser
 James Benjamin                                                    +44 7747 113 930 / +44 20 7379 5151
 Alistair de Kare-silver                                           Grit-maitland@maitland.co.uk

 finnCap Ltd - UK Financial Adviser
 William Marle/Teddy Whiley (Corporate Finance)                    +44 20 7220 5000
 Mark Whitfeld/Pauline Tribe (Sales)                               +44 20 3772 4697
 Monica Tepes (Research)                                           +44 20 3772 4698

 Perigeum Capital Ltd - SEM Authorised Representative and Sponsor
 Shamin A. Sookia                                                  +230 402 0894
 Kesaven Moothoosamy                                               +230 402 0898

 Capital Markets Brokers Ltd - Mauritian Sponsoring Broker
 Elodie Lan Hun Kuen                                               +230 402 0280

 

NOTES:

Grit Real Estate Income Group Limited is the leading pan-African real estate
company focused on investing in, developing and actively managing a
diversified portfolio of assets in carefully selected African countries
(excluding South Africa). These high-quality assets are underpinned by
predominantly US$ and Euro denominated long-term leases with a wide range of
blue-chip multi-national tenant covenants across a diverse range of robust
property sectors.

 

The Company is committed to delivering strong and sustainable income for
shareholders, with the potential for income and capital growth.

 

The Company holds its primary listing on the Main Market of the London Stock
Exchange (LSE: GR1T) and a secondary listing on the Stock Exchange of
Mauritius (SEM: DEL.N0000).

 

Further information on the Company is available at http://grit.group/
(http://grit.group/)

 

Directors: Peter Todd+ (Chairman), Bronwyn Knight (Chief Executive Officer)*,
Leon van de Moortele (Chief Financial Officer)*, David Love+, Sir Samuel Esson
Jonah+, Nomzamo Radebe, Catherine McIlraith+, Jonathan Crichton+, Cross
Kgosidiile(+) and Bright Laaka+ (Permanent Alternate Director to Nomzamo
Radebe).

(* Executive Director) (+ independent Non-Executive Director)

 

Company secretary: Intercontinental Fund Services Limited

Registered address: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter
Port, Guernsey GY1 4HP

Registrar and transfer agent (Mauritius): Intercontinental Secretarial
Services Limited

UK Transfer secretary: Link Asset Services Limited

SEM authorised representative and sponsor: Perigeum Capital Ltd

Mauritian sponsoring broker: Capital Markets Brokers Ltd

 

This notice is issued pursuant to the FCA Listing Rules and SEM Listing Rule
15.24 and the Mauritian Securities Act 2005.  The Board of the Company
accepts full responsibility for the accuracy of the information contained in
this communiqué.

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