South Africa’s Real People warns noteholders of likely covenant breach

By Marisa Wong

Morgantown, W.Va., Feb. 24 – Real People Investment Holdings Ltd. informed its noteholders that there could be a strong possibility of a covenant breach.

In a notice to noteholders, the issuer said its capital adequacy ratio remains above the covenant level of 30% but below the target level of 36%.

The issuer said that in the absence of a capital injection or a material improvement in its trading results in the near term, a breach of the covenant level is likely.

Earlier this month the company released its third quarter results for the quarter ended Dec. 31.

Based in East London, South Africa, Real People provides financial services focusing on unsecured credit, affordable housing, assurance, educational products and cellular products for customers in South Africa, Uganda, Tanzania and Kenya.

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