IBL 4-year and 7-year Secured Fixed Rate Notes (MUR and EUR) now available for subscription
M.C.B Stockbrokers Limited is acting as Sponsoring Broker for the public offering of Multi Currency Secured Fixed Rate Notes (the “Notes”) issued by IBL Ltd (“IBL”, the “Issuer” or the “Company”) and which will be listed on the Stock Exchange of Mauritius Ltd (the “SEM”) as from March 2023.
About IBL Group
The IBL group is one of the largest listed conglomerates in Mauritius with a market capitalisation exceeding MUR 35 billion and with activities in over 9 clusters namely Agro and Energy, Building and Engineering, Commercial and Distribution, Financial Services, Hospitality and Services, Life and Technologies, Logistics, Property and Seafood. For the year ended 30 June 2022, the group generated revenues of MUR 45 billion and profits after tax of MUR 2 billion.
About the Issuer
IBL acts as both a trading and holding company. Accordingly, it generates its income from BrandActiv (foodstuff distribution), HealthActiv (healthcare division) and dividends from its investee companies. The Company had revenues of MUR 6.3 billion, EBITDA of MUR 782m and outstanding borrowings of MUR 12.2 billion as at 30 June 2022.
An attractive fixed income return
IBL is issuing 4-year and 7-year fixed rate notes in MUR and EUR which represent an opportunity for investors who are comfortable with the risks associated with the Notes, to diversify their fixed income investments at an attractive return.
Fixed rates lock-in
While central banks have raised interest rates at unprecedented levels during the year 2022 to tame inflation, the market expectation is that the rate hike cycle is now nearing its end and the market expectation is that rates should likely start coming down in 2024. It may therefore be an appropriate time in the cycle to lock in attractive fixed income returns.
Use of proceeds by IBL
The Company is looking to raise a minimum of MUR 1.5 billion and a maximum of MUR 3 billion in a mix of MUR and EUR denominations. Up to MUR 2 billion shall be used solely and entirely to refinance existing debts of the Issuer and up to MUR 1 billion shall be used to finance certain strategic initiatives, including acquisitions in Africa.
Key terms of the Notes
| Currency | MUR | EUR | ||
|---|---|---|---|---|
| Tenor | 4-year | 7-year | 4-year | 7-year |
| Coupon rate p.a. | 5.60% | 6.25% | 5.00% | 5.80% |
| Minimum subscription amount | MUR 10,000 | EUR 1,000 | ||
| Coupon type | Fixed | |||
| Coupon frequency | Quarterly in arrears | |||
| Security status and substitution | The Notes shall be secured by a subordinated floating charge over all the assets of the Issuer. The floating charge will be granted by the Issuer in favour of the Noteholders’ Representative. The Issuer shall be entitled to replace or substitute the floating charge with a share pledge constituted over the pledged shares of each listed investee company as determined by the Issuer. The Issuer can change the constituents of the pledged shares, provided that the pledged shares shall comprise solely shares of the listed investee companies. | |||
Key dates
| Offer Start Date | 23 December 2022 | |||
| Offer End Date | 28 February 2023 | |||
| Settlement Date | By latest 6 March 2023 | |||
| Allotment Date | 8 March 2023 | |||
| Refund in case of oversubscription | On or about 10 March 2023 | |||
| Issue Date and Interest Start Date | 9 March 2023 | |||
Terms and conditions of the offer
The terms and conditions of the offer, including risk factors not limited to credit risk, default risk, liquidity risk and interest rate risk are explained in the Prospectus. Investors should read and understand the Prospectus and the risks associated with the Notes before subscribing.
Investors should be aware that no subsidiary or affiliate of the MCB Group Ltd (including but not restricted to M.C.B Stockbrokers Limited) or the Issuer has guaranteed either the principal amount invested in the Notes or the coupon rate associated in the Notes. The Notes are secured by a subordinated floating charge on the assets of IBL. In this respect, the risks associated with the Notes are those of IBL solely.
How to subscribe?
Applicants willing to subscribe should complete the Application Form which should reach the Sponsoring Broker, M.C.B Stockbrokers Limited, Raymond Lamusse Building, Sir William Newton Street, Port Louis at latest 28 February 2023 by 3 p.m. Mauritian Time.
Clients who are set up to send us instructions by email may choose to send a scanned copy of their applications by email on sales.sb@mcbcm.mu.
Contact us
Should you require more information, please contact us on (+230) 207 6868.
Offer documents
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