TIDMCBA
RNS Number : 7329I
Ceiba Investments Limited
16 December 2020
16 December 2020
CEIBA INVESTMENTS LIMITED
(the "Company")
(TICKER CBA, ISIN: GG00BFMDJH11)
Legal Entity Identifier: 213800XGY151JV5B1E88
TRADING UPDATE
CEIBA Investments Limited ("CEIBA" or the "Company"), the
largest listed foreign company solely dedicated to investing in
Cuba, with interests in the commercial and tourism real estate
sectors, is pleased to provide information with respect to Cuba's
monetary reform and an update on trading, operations and
investments, in particular with respect to its expected operational
result over 2020, its investments in the mixed use multi-phase
industrial park to be located in the Special Development Zone of
Mariel, the construction of the 400 room beachfront hotel Meliá
Trinidad Península, and the Company's plans to attract additional
funding.
Operational Result 2020
The comprehensive net income attributable to the Shareholders of
the Company for the year that will end on 31 December 2020,
excluding changes in the fair value of the assets, is expected to
be in the region of US$2.5 million (net income), reflecting both
the excellent results of the Miramar Trade Centre office complex
and the loss of income from the four hotels in which the Company
holds an interest as a result of the Covid-19 pandemic.
Assuming that the US Cuban embargo legislation will ease during
the upcoming Administration of US President-Elect Biden and that
international tourism to Cuba will pick up as a result of vaccines
and other measures to successfully control the Covid-19 pandemic,
the future outlook of the Company is considered to be positive.
GBM IT Mariel
In line with the binding framework agreement executed on 20
October 2020 with GBM Interinvest Technologies S.L., the Company
made its initial investment of EUR250,000, which will be used for
the development of the mixed use multi-phase industrial park and in
particular the groundworks that will be carried out on part of the
11.3 hectares plot in connection with the construction of the first
phase of the project. The first phase of the industrial park is
expected to become operational in 2022.
Meliá Trinidad Península
During the past months, the construction of the hotel Meliá
Trinidad Península continued, but at a significantly reduced pace.
The project has now surpassed the 60% completion level and
structural works on all main and secondary buildings and swimming
pools, as well as roof waterproofing and electrical fixings are
close to complete. To date, the aggregate investment of the Cuban
joint venture company in land rights and executed construction
works is approximately US$42 million.
A full on-the-ground review carried out in November 2020 by
International Hospitality Partners (www.ihp-group.com) confirmed
the quality, quantities and values of the certified construction
works. At the same time, the review that has been carried out
serves as the basis for the calculation of the timing, budget and
disbursement schedule to finalize the construction which is now
expected to be completed towards the end of the first half of
2022.
Funding and Re-Introduction of Dividend Policy in 2022
In order to finish the construction of the hotel Meliá Trinidad
Península and fund the Company's investments in GBM IT Mariel, the
Company has expressed on numerous occasions that it is looking to
attract between EUR15 million and up to a maximum of EUR20 million
in additional funding, either through the issuance of new ordinary
shares at the Company's Net Asset Value per share as per 30 June
2020, or by way of a loan, or convertible loan instrument
convertible at the Net Asset Value per share as per 30 June 2020.
The Company has received preliminary indications of interest from
investors in an unlisted 5 year convertible loan with an interest
coupon of 10 percent. Investors who are potentially interested in
investing in the convertible loan should contact the Company's
broker, N+1 Singer.
The loan will close the Company's funding gap needed to complete
the Meliá Trinidad Península hotel and develop the first phase of
the industrial park of GBM IT Mariel. In addition, the resumption
of hotel operations in combination with reduced capital commitments
will likely enable the Company to re-introduce the payment of
dividends in 2022.
Monetary Reform
On 10 December 2020, the Cuban government adopted new important
reforms and announced that on 1 January 2021 the long-awaited
unification of its two currencies will start to be implemented. The
most prominent measures that are included in new legislation that
was published that day are to eliminate the Cuban convertible peso
(CUC) that circulated alongside the Cuban peso for nearly three
decades and to peg the Cuban peso to the United States Dollar at a
fixed exchange rate of 24 to 1.
In parallel with the announced currency unification, the
government has adopted a variety of new measures aimed at greatly
reducing or eliminating subsidies to state-owned companies, which
will be given a limited period of time to demonstrate their
profitability or they will be closed. In a similar manner, the
majority of subsidized services to individuals will also be
eliminated, although public sector salaries will be raised
significantly to lessen the impact on the population.
The Company welcomes the unification of currencies and other
monetary reforms that have been announced, which it views as
necessary steps in the ongoing modernization of the Cuban economy
and financial system. We are presently studying the impact of these
measures on the operations and investments of the Company. At
present, the income and costs of the Company are all in CUC and
hard currency.
END OF ANNOUNCEMENT
For further information, please contact:
Aberdeen Standard Fund Managers Limited Tel: +44 (0)20 7463
6000
Sebastiaan Berger / Evan Bruce-Gardyne
N+1 Singer Tel: +44 (0)20 7496 3000
James Maxwell / James Moat (Corporate Finance)
James Waterlow (Sales)
JTC Fund Solutions (Guernsey) Limited Tel: +44 (0)1481
702400
www.ceibainvestments.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFZMMZZKZGGZM
(END) Dow Jones Newswires
December 16, 2020 02:00 ET (07:00 GMT)
Ceiba Investments (LSE:CBA)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Ceiba Investments (LSE:CBA)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024