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Share Name Share Symbol Market Type Share ISIN Share Description
Ceiba Investments Limited LSE:CBA London Ordinary Share GG00BFMDJH11 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 86.00 82.00 90.00 86.00 86.00 86.00 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 16.2 1.5 4.5 20.2 118

Ceiba Investments Limited Trading Statement

16/12/2020 7:00am

UK Regulatory (RNS & others)


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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

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END

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December 16, 2020 02:00 ET (07:00 GMT)

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