The repayment of the internal loan is practically sufficient to cover the bond maturing in 2024. In itself, I don’t understand why there is such a celebration on the stock exchange. Liquidity remains shaky, and further measures are needed to prevent the company from reaching an impasse. In fact, credit metrics might even weaken slightly following this maneuver: ICR, because the subsidiary’s income is removed from the income statement, and LTV, because properties are removed from the balance sheet…
The proposed IPO of the Residential division or bringing in co-investors should, for its part, help significantly, but the market is currently so frozen that there don’t seem to be the prerequisites for it. I don’t know how much this new reporting structure will actually improve access to bank financing as management suggests, but if that is the case, it would be a great thing and, in my opinion, positive in itself.
The bond market is closed to the company, and what the company needs most urgently is some form of equity financing so that banks would be more comfortable with financing the company.