27 April 2021
Carey Olsen advises on first Cuban focused convertible bond to list on TISE
CEIBA Investments Limited has become the first Cuban focused investment trust to list a convertible bond on The International Stock Exchange (TISE).
CEIBA is a Guernsey registered closed ended investment scheme with a primary focus on Cuban real estate assets. The company has issued €25 million 10% senior unsecured convertible bonds due 2026 which have been listed on TISE.
The proceeds of the issue will finance the completion of further tourism-related and commercial property projects in Cuba.
John Herring, chairman of the board of directors of CEIBA, said: "We are delighted to have closed this transaction and listed the convertible bonds on TISE. TISE is well known as a recognised stock exchange which offers a proven, efficient route to market for convertible bonds and we were very pleased with the service from our administrator, JTC, our legal adviser and listing sponsor, Carey Olsen, and the team at TISE in relation to this listing."
Carey Olsen acted as Guernsey legal adviser and TISE listing sponsor for the issue. The team comprised partner Ben Morgan, associate Lisa Bailey and listings and company formation assistant Kate Everitt.
Ben said: "Carey Olsen is pleased to have supported CEIBA on the completion of this successful bond issue and its listing on TISE. It represents strong support for the company’s investment focus in Cuba and its growing economy."
Anthony Byrne, head of bond markets at The International Stock Exchange Group, said: "We are delighted to welcome CEIBA's convertible bond issuance to TISE. CEIBA joins many other notable companies who have availed of our cost-effective and responsive service to list convertible bonds on TISE. We are delighted to play our part in their ongoing story of investing into the Cuban economy."
The bonds admitted to TISE's Official List are convertible into the ordinary shares of CEIBA, which are listed on the Specialist Fund Segment (SFS) of the London Stock Exchange.
CEIBA is mandated to invest in, and manage, a portfolio of Cuban real estate assets, with a focus on tourism-related and commercial property sectors. The Cuban real estate assets also include infrastructure, industrial, retail, logistics, residential and mixed-use assets.
CEIBA’s investment manager is Aberdeen Asset Investments Limited.
Sebastiaan A.C. Berger, fund manager of Aberdeen Standard Investments and chief executive of CEIBA, said: "The support we have received for this issue from both our existing shareholder base and new investors will enable us to continue our long-term strategy of investment into Cuba. It is poignant that we undertook this bond issue in a year when we will celebrate our 25th anniversary of investments and operations in Cuba and in doing so, we have been able to work with great partners, including JTC who have been with us on every step of that journey."
JTC in Guernsey provide administration services to CEIBA.
James Tracey, managing director – Guernsey, said: "CEIBA are a valued client and we are delighted to be able to showcase our ability to support this bond issuance. We have worked with the CEIBA team for many years and look forward to continuing our relationship with them."