MIC to Recoup 45% of Funds in 7 Months

The Mauritius Investment Corporation (MIC) is set to recoup almost half of the debt financing it issued to private companies during the COVID-19 pandemic, with Rajeev Hasnah, the Bank of Mauritius’s First Deputy Governor, stating that a repayment strategy is already in place. The corporation is confident that 45% of the Rs 22 billion in bonds it issued will be repaid ahead of schedule.

Rajeev Hasnah, the official responsible for the Mauritius Investment Corporation (MIC), shared that Rs 3 billion has already been repaid, well before the initial seven-year maturity date from 2020.

Additionally, the MIC has received notices of early repayment intent amounting to Rs 7 billion.

The total amount of Rs 10 billion that has been or will be repaid soon represents 45% of the Rs 22 billion in bonds issued to private firms.

Strategic Repayment Plan

Mr. Hasnah explained that a strategy was put in place in March to maximise the recovery of funds injected into businesses that were weakened by the pandemic.

He praised the central bank’s subsidiary, which, in just seven months, is well on its way to recovering a significant portion of the allocated funds.

The First Deputy Governor (FDG) noted that recovery efforts will continue to focus on this portfolio, which is the second-largest beneficiary of MIC’s financing, after Airport Holdings Ltd (AHL), which received Rs 25 billion.

The corporation also holds land assets estimated at Rs 10 billion, which can be sold at any time to recover funds.

Capital and Portfolio Breakdown

To date, the MIC’s commitments stand at Rs 59 billion out of an initial capital of Rs 81 billion. The remaining balance will be returned to the Bank of Mauritius (BoM) and destroyed, as these funds originated from a process of money creation.

The BoM has already received a report from the World Bank, which was commissioned to audit the MIC’s initial investments.

This document includes a series of recommendations that are currently being implemented.

The latest MIC report, for the period ending on 30 June 2023, shows investments in key sectors such as hospitality, textiles, construction, and real estate.

Major beneficiaries include Medine Limited and New Mauritius Hotels Limited, each receiving Rs 2.5 billion. Other hotel sector players that received financing include:

• Long Beach: Rs 2 billion
• Rogers Hospitality Operations Ltd: Rs 1.3 billion
• Anahita Hotel: Rs 1.1 billion
• Mauriplage Beach Resort Ltd: Rs 650 million
• Attitude Hospitality Ltd: Rs 500 million
• Zilwa Attitude: Rs 65 million

In other sectors, the MIC has injected funds into:

• Omnicane: Rs 990 million
• Compagnie Mauricienne de Textile Ltée: Rs 900 million
• FM Denim Co Ltd: Rs 300 million
• R.E.A.L Garments Ltd: Rs 275 million
• World Knits Ltd: Rs 160 million

In the construction and real estate sectors, beneficiaries were:

• Hermes Properties Ltd: Rs 650 million
• Kuros Construction: Rs 225 million
• Best Construct: Rs 150 million

Overall, the accommodation and food services sector received 14.2% of the MIC’s investments, followed by manufacturing at 27.7%, agriculture at 14.2%, real estate at 2%, and construction at 0.8%.

The “other” segment accounts for more than half of the funds, with 50.7% of investments distributed among seven companies.

Source: l’Express