Ceiba Investme. Regulatory News (CBA)

31 March 2021

CEIBA INVESTMENTS LIMITED

(the "Company")

(TICKER CBA, ISIN: GG00BFMDJH11)

Legal Entity Identifier: 213800XGY151JV5B1E88

TRADING UPDATE

Successful issue of €25 million Senior Unsecured Convertible Bonds 2026

CEIBA Investments Limited ("CEIBA" or the "Company"), the largest listed international company solely dedicated to investing in Cuba, with interests in Cuba's commercial and tourism real estate sectors, is pleased to announce the successful completion of a €25,000,000, 10%, senior unsecured convertible bond issue due for repayment on 31 March 2026 (the "Bonds"). The conversion price of the Bonds is equal to the (unaudited) net asset value per ordinary share as at 30 June 2020 (104.3 pence). The Bonds were issued on 31 March 2021 and will be admitted to The International Stock Exchange (TISE), Guernsey. The ISIN number of the Bonds is GG00BMV37C27.

The principal purpose of issuing the Bonds is to provide finance that allows for the completion of the construction of the Meliá Trinidad Península a 400 room, beachfront hotel, in Trinidad, Cuba, but the proceeds of the Bonds may also be used for investment in the logistics warehouse development project of Grupo B.M. Interinvest Technologies Mariel S.L., for general corporate purposes, and for other commercial opportunities when they arise. The Bonds are not expected to be used to support any operating costs of the Company due to the strong, continuing earnings performance of the Company's largest investment, the Miramar Trade Centre office complex.

The issue was increased from €20 million to €25 million due to strong investor demand and remained oversubscribed by existing and new investors. It is the first major international fundraise into Cuba since the announcement of Cuba's monetary reforms in December 2020. The total cost of the issue was less than 1.30% including broker, legal, registration and any other fees payable by the Company. Neither the Company nor any of its subsidiaries have any other third-party debt financing apart from the Bonds.

John Herring, Chairman of the Board of Directors of CEIBA, commented:

"We are really encouraged to have received this support from both our existing shareholder base and new investors. In turn, we are very pleased to be able to support Cuba and its economy, through the completion of this unique hotel, especially given the current challenging and uncertain Covid-impacted environment."

"Mutual respect, engagement, confidence and economic growth are essential ingredients for the country to move forward, and it would appear that by carrying out monetary reforms and broadening the legal framework for the private sector, Cuba is taking big steps in the right direction. The funding sourced to complete the Meliá Trinidad Península is another small step towards the future."

""CEIBA is very well positioned to continue its leading role in Cuba's foreign direct investment sector." 

Sebastiaan Berger, Fund Manager of Aberdeen Standard Investments and CEO of CEIBA, commented:

"We are very excited that the funding to ensure the timely completion of this state-of-the-art hotel in Trinidad has now been secured so that it can be added to the Company's high quality investment portfolio of Cuban mixed real estate assets."

"Investors seem to understand that a window of opportunity is opening and that there are real chances that both tackling the Covid-19 pandemic and the US-Cuban relationship will improve in the foreseeable future."

Background

During 2021, CEIBA will celebrate the 25th anniversary of its Cuban investments and operations. The Company was the first Cuba dedicated investment trust to be listed on the Specialist Fund Segment of the London Stock Exchange following a successful IPO that took place on 18 October 2018. Its principal investments are in the Miramar Trade Centre, Havana's principal business centre, the hotel Meliá Habana hotel (in Havana), the Meliá Las Américas, Meliá Varadero and Sol Palmeras hotels (in Varadero), the Meliá Trinidad Península hotel (in Trinidad) and an industrial logistics complex development in the Special Development Zone of Mariel. The Company's 2020 Financial Statements are scheduled to be published in April 2021.

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.ceibalimited.co.uk