Trading Statement

RNS Number : 4609O

Ceiba Investments Limited

30 January 2019

 

30 January 2019

CEIBA INVESTMENTS LIMITED

(TICKER CBA, ISIN: GG00BFMDJH11)

TRADING UPDATE

CEIBA Investments Limited ("CEIBA" or the "Company"), the largest listed foreign investor solely dedicated to investing in Cuba, is pleased to announce that following its successful Initial Public Offering, which saw gross proceeds of £30 million raised and the listing of its Ordinary shares ("Ordinary Shares") on the Specialist Fund Segment of the Main Market of the London Stock Exchange plc on 22 October 2018 (the "Listing"), it has now successfully deployed all funds raised.  The following investments have been made from the proceeds of the Listing, existing cash resources and dividends distributed to the Company from its joint venture investments: 

·    In accordance with the intentions stated in the Prospectus, immediately following the Listing, the Company repaid the outstanding €30 million bridge loan that was previously provided by its largest shareholder in order to expand the Company's interest in the Meliã Las Americas, Meliã Varadero and Meliã Sol Palmeras hotels (the Varadero hotels).

·    In addition, in relation to the merger between the Cuban joint venture company Miramar S.A. and the joint venture company that owned the Varadero hotels, capital contributions were made to Miramar S.A., of which CEIBA's interest was over US$18 million. As part of the merger, the land leases of the hotel properties in Havana and Varadero were extended to 31 December 2042. 

·    With respect to the project to develop the 400 room hotel Meliã Trinidad Playa (Province of Sancti Spiritus, Cuba), the Company completed its outstanding (US$3.4 million) capital contribution to the Cuban joint venture company TosCuba S.A. and disbursed an additional US$4.8 million under a construction finance facility.  The construction of the hotel officially started in December 2018 and is due to be completed in December 2020.

The Company expects to announce its audited NAV and final results for the year ended 31 December 2018 in April 2019.

John Herring, Chairman of CEIBA Investments Limited, said:

"We are very pleased that we have fully deployed the proceeds of the IPO and have completed the merger to join our profitable, operational hotels in Havana and Varadero and that the property leases of the hotels have all been extended up to 31 December 2042. We are also pleased that construction of our 400 room hotel project in Trinidad (Cuba) has started. It certainly seems that we are on track on all fronts." 

For further information, please contact:

Aberdeen Standard Fund Managers Limited Sebastiaan Berger / Gary Jones / Christian Pittard	Tel:  [phone]
N+1 Singer James Maxwell / James Moat (Corporate Finance) James Waterlow (Sales)	Tel: [phone]

 

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