Pan African Financial Institution Shelter Afrique issued a profit warning for their 2016 financial year and expects their earnings to be lower than 25 percent of their earnings reported in their previous financial year (2015). The company has attributed the reason for this drop due to a sharp increase in the level of impairment charges in anticipation of expected losses from from the portfolio. The company has noted that they are aware of the situation and measures are being taken to recover the debts.
Shelter Afrique has an exposure on the Nairobi Securities Exchange through two five year medium term notes:
- FXD 1/13/05Yr. This note was issued in 30 September, 2013. It matures in 24 September 2018. The amount raised on this note was Ksh 4.2 Billion and has a fixed coupon of 12.75 percent.
- FR 1/13/05Yr. This note was issued in 30 September, 2013. It matures in 24 September 2018. The amount raised on this note was Ksh 760 Million and interest is paid based on the floating rate on the 182 day treasury bill plus 150 basis points (1.5%).
The main shareholders of Shelter Afrique are African Development Bank, 44 African states and Africa Reinsurance company.
Read: AFDB approves new US$28.2 Million funding injection in Shelter Afrique
Read: AfDB Increases Stake in Shelter Afrique to 22.7pct with USD8.2M injection
Read: Moody’s downgrades Shelter Afrique rating, cites further downgrade
Sources: (Shelter Afrique, NSE, Kenyan Wall Street)
