Mauritius’ ENL raises Rs 1.15 billion in secured notes to fund development plans
The success of this fund raising is a sign of investors’ trust in the potential of the group, noted Hector Espitalier-Noel, group CEO, ENL. (Image: Company)
Leading Mauritian conglomerate ENL Ltd, which owns and runs the landmark Mall of Mauritius, Bagatelle, successfully issued secured notes of Rs 1.15 billion on July 25, 2014 through a private placement with institutional investors.
The Stock Exchange of Mauritius (SEM) communique dated 1 August, 2014, went on to note that ENL Limited plans to use the net proceeds of the offering to refinance existing bank debts and to support its development plans.
It may be noted that MCB Capital Markets acted as sole lead manager and book runner for the transaction.
“The strategic orientation which we gave to the business of the group these last years had very positive results. The success of this fund raising is a sign of investors’ trust in the potential of our group,” said Hector Espitalier-Noel, group CEO, ENL.
He added that ENL turned to this mode of financing for the first time and is very satisfied with the interest it has aroused among institutional investors.
ENL Limited mentioned in the communiqué that the notes have a term of six years and are structured in two equal tranches bearing interest at fixed and variable rates respectively.
In addition, the notes are secured through a pledge on shares of ENL Land Ltd (ENL Land), a subsidiary of ENL, and are redeemable either in the form of ENL Land shares, in cash or a combination thereof.
Besides, ENL Limited will remain ENL Land’s majority shareholder after the redemption and it may be noted that ENL Limited currently holds 69.6 % of the equity of ENL Land.
ENL Land has holdings of 16,000 acres situated in the centre and in the south of the island which are used to conduct two separate lines of activities, namely agriculture and real estate development.
Besides, SEM data as at August 4, 2014 showed that ENL Ltd’s stock price opened at Rs 25.20 and was up 0.4% at Rs 25.30 on the latest update.
About ENL Limited:
ENL Limited is listed on the Development and Enterprise Market (DEM) of the SEM since 2006.
It is involved in five major business sectors: agriculture, commerce and manufacturing, property development, investment management as well as corporate services. These activities are grouped into five business units.
Incorporated in 1944, ENL has steered the group’s expansion across different business sectors, and it is positioned today as an important contributor to the island economy.
The group declared a turnover of Rs 9.18 billion and profits after tax of Rs 3.42 billion for the year ended 30 June 2013, while 9 months performance to 31 March 2014 showed revenues and profits of Rs 7.7 billion and Rs 581.7 million respectively.