RMB creates flexible funding solution for AttAfrica to reduce cost of borrowing

The challenge

AttAfrica is a joint venture between listed real estate investment trusts (REITs) Attacq Ltd (Attacq) and Hyprop Investments Ltd (Hyprop). In 2020, the parties announced plans to scale back their investments across the Broader Africa. As part of their strategic focus, they needed to divest from certain assets within their portfolio, and to refocus efforts across their remaining four key assets including Accra Mall, Kumasi Mall, West Hills in Ghana and Ikeja Mall in Nigeria.

The RMB solution

RMB engaged with AttAfrica and its shareholders to discuss merits of a portfolio lend. Whilst certain nuances prohibited a full cross-collateralised portfolio transaction, RMB was able to offer a fully underwritten US$148-m debt restructure which achieved the main aim of lowering the cost of borrowing. It also incorporated certain mechanisms to address the operating realities of retail centres as a result of Covid-19, such as Nigeria-specific challenges due to USD shortages, flexibility to exit certain assets if required as well as taking into account co- and minority shareholders. RMB was mandated with the task of arranging the debt in one multi-faceted US$148-m transaction across these four assets to create the required flexible funding solution.

How did this enable the client?

This complex, 4-part funding solution allowed for financial flexibility and improved shareholder returns during the Covid-19 pandemic and allows for Attacq, Hyprop and AttAfrica flexibility to divest from their assets to align with their strategic goals.