london stock exchange welcomes ceiba investments limited to the specialist fund segment of the main market
As of today, CEIBA Investments Limited (“CEIBA” or the “Company”) is the only fund listed on a major international stock exchange that offers direct exposure to Cuba. Following its successful capital raise it presently has a market cap of over £137 million.
The Company and its Track-Record
CEIBA is a country fund with a primary focus on Cuban real estate, provides an opportunity for investors to gain exposure to Cuban commercial real estate, hotels and other assets, during a window of opportunity which is likely to have a limited time horizon as relationships between Cuba and the international community, and particularly the U.S., continue to improve. It aims to provide investors with a regular level of income and substantial capital growth, mainly through the investment in, and management of, its Cuban portfolio.
CEIBA is presently the largest foreign holder of commercial real estate assets in Cuba, and its existing, yielding, investment portfolio includes the most important modern office complex in Cuba, four existing hotels (one in Havana and three in Cuba’s principal beach resort area, Varadero), and a development of a 400 room hotel in Trinidad (Cuba). The Company intends to continue paying from its operational results an attractive annual cash dividend and is targeting an annual total return of between 12.5% and 17.5%.
Since 2001, when the current management team were appointed, the Company has grown from $19 million to $175 million (including $92 million new capital raised) and distributed approximately $80 million in dividends. Over the past 5 years the Company has achieved an annualised total shareholder return of 15.2% in US dollar terms and 19.5% in sterling terms. Following Admission, the Company is targeting a 4% annual dividend yield and a total shareholder return of between 12.5% and 17.5% per annum (both in US dollar terms).
Listing on the Specialist Fund Segment of the London Stock Exchange
The principal reason for listing all of its (137,671,567) Ordinary Shares on the Specialist Fund Segment of the Main Market of the London Stock Exchange is to benefit from a platform that will allow the Company to attract permanent capital to expand its existing investment portfolio and to continue to play a modest role in the developing economy of Cuba.
The Company believes that the listing on the London Stock Exchange is timely since it enables the Company to accelerate the extension of its investment footprint and benefit from the fact that foreign investment has been declared a priority of the country.
CEIBA is managed by Aberdeen Asset Managers Limited with Sebastiaan Berger as its senior portfolio manager and supported by CEIBA’s outstanding team in Havana. Its (non-executive) board of directors comprises John Herring (Chairman), Peter Cornell, Keith Corbin, Trevor Bowen and Colin Kingsnorth.
John Herring, Chairman of CEIBA Investments Limited:
“We are very much looking forward to continuing our record of successful investment in Cuba and demonstrating that Cuba is not only a great tourism destination and producer of the world’s finest rums and cigars, but also a great place to invest in!”.Sebastiaan Berger, Senior Portfolio Manager: “It is great that twenty-two years after having started to do business in Cuba, I am now part of CEIBA’s successful launch on the Specialist Fund Segment of the London Stock Exchange. I want to thank Aberdeen Standard Investments, and all our board members and shareholders for their continuing support. We have come a long way and will do our utmost to continue our successes and move forward.”.
AIFM: Aberdeen Fund Managers Limited
Investment Manager: Aberdeen Asset Investments Limited
Financial Adviser: Nplus1 Singer Advisory LLP
Administrator/Company Secretary: JTC Fund Solutions (Guernsey) Limited
Registrar: Link Market Services (Guernsey) Limited
Solicitors to the Company: Gowling WLG (UK) LLP
Advocates to the Company: Carey Olsen (Guernsey) LLP
Reporting Accountants: Ernst & Young LLP (UK)
Independent Auditor: Ernst & Young LLP (Guernsey)