By Sharon Chepng’etich
Cytonn investments, on Monday, signed a loan facility deal worth Sh650million with State Bank of Mauritius (SBM), as it seeks to bring in long-term debt to complement its private markets funding such as Cytonn High Yield Solutions and institutional funding such as funding from Taaleri of Finland.
Cytonn Real Estate, the development affiliate of Cytonn investments, will direct the loan facility towards the completion of the Alma in Ruaka, which is a Ksh4billion residential mixed-use development in Ruaka town, Kiambu County.
According to Edwin H. Dande, Chief Executive at Cytonn Investments, the project signals the beginning of a long-term partnership with SBM. “This is the first bank loan for Cytonn Investments, which has been raising capital from institutional investors such as Taleeri of Finland (Ksh5billion investment) as well as high-net worth individuals (ksh11billion) through Cytonn HYS,” he said, adding:
“This partnership with SBM is not just about Alma, it’s about coming together to contribute towards alleviating the housing needs and in turn creating jobs, growing the economy and uplifting the standards of living.”
On the other hand, Jotham Mutoka, Deputy Chief Executive at SBM Bank, lauded Cytonn for playing a key role in developing housing in Kenya, with the highest standards of corporate governance.
He said the loan facility is a testament to SBM believing in the Cytonn strategy. “Projects such as The Alma are a place for skilled Kenyan artisans to put their skills to test, a place for building materials to be used, and an overall collaboration with the demand and supply side. SBM’s role is to support this ecosystem to help the economy achieve its objectives,” says Mutoka.
Antti-Jussi Ahveninen, from Taleeri of Finland, Cytonn’s largest institutional investor noted that institutional investors such as Taleeri and SBM not only provide capital, but also bring best standards to the institutions they work with, and perfom due diligence before investing.
“Alma is a comprehensive development project and the best high-density mixed use development in Ruaka, which has seen investors get attractive returns. And for home buyers, it’s a high quality and institutional grade project. Bank funding strongly complements institutional capital, such as funds from Taleeri and guarantee completion and delivery of real estate projects,” Mr Ahveninen said.