LISTED hotelier, Rainbow Tourism Group (RTG) says it will soon redeem in full the debentures issued during its capital raise exercise two years ago.
“The board of directors of the company hereby advises debenture holders that the board has resolved to redeem in full the 16 687 500 debentures issued during January 2018 capital raise.
The redemption will be consummated in line with Clause 5.6 of the Rainbow Tourism Group Notarial Deed of Debenture dated February 20, 2019,” RTG company secretary Napoleon Mtukwa said in a statement.
Furthermore, the company said the full redemption would allow debenture holders an opportunity to redeploy their funds into other investment instruments likely to yield returns commensurate with the now obtaining environment.
Notwithstanding provision 5.6 of the Rainbow Tourism Group Notarial Deed of Debenture which provides for a 60-day notice for redemption from the day of publication of this notice, the company has put in place adequate funding to fully pay the accrued interest for the period between February 22, 2020 and August 21, 2020 and redeem the entire principal on the same day.
