Mixta Real Estate Plc

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Mixta Real Estate Plc (2022-04)
  • Mixta Real Estate Plc
  • Year : Apr 2022
3 Tokens
USD 300.00
Summary

Mixta’s liquidity challenges also contribute to the ratings downgrade. Of the Group’s debt, around 68% is expected to fall due within one year, indicating a significant refinancing risk, particularly in light of the relative illiquidity of the property portfolio. Furthermore, the Group also lacks sufficient unutilised funding facilities to cover outstanding commercial paper and facilities maturing in the next six months, translating to a very low liquidity coverage around 0.2x.

Additional Information

Mixta provides key services across the value chain, including property development and investment, and develops residential, commercial, and retail properties. It is a subsidiary of Asset & Resource Management Holding Company Limited (“ARM”), one of the largest non-bank financial institutions in West Africa with over USD3.5bn Funds under management. The Evolving Outlook reflects the prospects for a return to financial sustainability if the Group is able to raise sufficient cash from property sales, debt refinancing and/ or a recapitalisation. Nevertheless, in the absence of these events, and ongoing funder support, there remains the possibility that Mixta would require a distressed debt restructuring or even default on some of its debt obligations.

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