Geneva Finance continues to repay investors
Geneva Finance paid around $6.7 million of interest to investors on September 30 after repaying debenture holders and banking facilities ahead of schedule on June 29.
Sunday, October 10th 2010, 9:51PM
by Sophia Rodrigues
Inclusive of interest, Geneva has now made total payments comprising of principal and interest of $100.7 million to investors. Of this nearly $28.5 million is only interest payment at an average interest rate of 10.75%.
Geneva had paid 55% of the original principal amount to debenture investors as per its March 2010 annual rReport and this payment would have taken the repayment of original principal to about 57.5%. The balance is due at regular intervals until March 2015. Around 15% of the original principal was converted in to ordinary shares.
The company said it has achieved significant milestones in the past 12 months including repositioning of its target customer base to a higher affordability lower risk profile, the rollout of the internet base on-line credit application and improved distribution channels for its products.
The company has continued to focus on cost reduction and has made savings of $21 million per annum since October 2007.
Geneva currently offers debentures ranging from terms of 18 months to 36 months. The rate for a 18-month term is 9.75% and for 36 months it is 11.25%. The company has a rating of CCC from Standard & Poor's.
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