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“A person can purchase $50,000 in bonds or $1000 in bonds, depending on what their means are and if they qualify and get access to HDC housing, they will be able to redeem or cash in these bonds as a reduction in the purchase price.
Let’s say you have housing bonds totalling $100,000 and you are purchasing an HDC house for $500,000 you would present your bonds of $100,000 and your liability in terms of the payment of the balance of $400,000.”
Source:http://www.looptt.com/content/housing-bonds-assist-citizens-purchasing-hdc-homes
triniringo wrote:Is the 2019 Housing bonds and NIF2 the same
Through a stockbrokerredmanjp wrote:how do you buy the housing bonds?
dogg wrote:So if Republic bank and other investee companies decide like others to withhold full or all dividends due to covid, will govt have to borrow money to pay interest to bondholders??
Redman wrote:Based on the offering doc- the the bonds are fixed rate.
Therefore the Interest is a fixed dollar value of 224M per annum.
The 2017 Div INcome on the NIF holdings was 369M
With that in mind the Dividend flows up to this time would have been allocated to Expenses, the Sinking Fund and to Interest Payments on the bond.
So IMHO- The Interest payments are now supported by
1) The $ Value of the Dividends being 150% of the INTEREST Payments-so the companies can reduce their dividends by about 30% and still cover the Interest.
2) The Sinking Fund- This is for Principle repayment- so call a chunk of the 5 year tranche, or redirect to Interest payment-although this would materially change the credit rating of the instrument.
3)GORTT can agree to make up the shortfall on an annual basis.
Looking at the whole pic I think they would be able to use their ownership to maintain the dividends quantity in order to meet the minimum Interest payments.....RBL and TGU make up 75% of the NIF-but I guess more than that in dividend flow.
Coupons have first call on the Dividends....so it means that if there is anything to be reduced -it is the Principal Sinking Fund.
http://nif-tt.com/wp-content/uploads/20 ... on-web.pdf
dogg wrote:Well now WITCO is also not paying an interim dividend
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