Cape Verde: Cape Verdean real estate company Sogei issues bonds to fund investments

16 December 2008

Praia, Cape Verde, 16 Dec – Cape Verdean real estate company SOGEI Monday issued 13.5 million euros of bonds, the biggest ever issue in Cape Verde, to secure funding for real estate projects.

“Taking into account (…) the current retraction in real estate Sales, particularly in tourism real estate, previous sources of funding have dried up. (…) and therefore we have to find alternative sources of funding, particularly in an area that has a direct relation with the international financial system,” explained the chairman of the board of directors of SOGEI, Jorge Spencer Lima.

The operation, he said, would fund two of the company’s large projects: The Bai Center office building in Praia, expected to cost around US$10.7 million, and the Salinas Beach Resort, on the island of Maio, budgeted to cost US$33.7 million.

“Our main markets in Cape Verde were the English and Irish markets, and these are the ones that have seen the most negative effects from the international crisis,” said Spencer Lima.

The company issued 1.5 million bonds with a nominal value of 1,000 Cape Verdean escudos (9 euros) each.

The subscription period for the bonds runs between 22 December and 22 January and the bonds have a maximum maturity of five years.

The chairman of the Cape Verde Stock Exchange (BCV), Veríssimo Pinto, said that SOGEI’s bonds with the biggest ever private bond issue in Caqpe Verde. (macauhub)