Bayport Management Ltd. (the Holding Company) announced as highlighted in the publication of the unaudited fourth quarter and full year 2023 results, the Holding Company and its subsidiaries experienced good growth in its loan book by c.8.5% to USD 1.288 billion, underpinned by a healthy operating model driven by high-quality customers, strict affordability criteria and strong payroll collections, resulting in low non-performing loan ratios across its operating entities. However, the Holding Company's liquidity position has tightened on the back of the negative impact of foreign exchange movements, principally due to a weakening of African currencies against the US dollar, in addition to the sustained period of elevated global interest rates. These factors have impacted the Holding Company's liquidity position and cash flows, thereby impacting its ability to meet its existing debt service and interest obligations, which are elevated due to the increase in variable rate funding.

The challenges outlined above have necessitated the need for a comprehensive sustainable solution to address the Holding Company's capital structure, cash interest obligations, and debt maturities. Due to a combination of circumstances set out above, the Holding Company is not in a position to pay the interest due on 21 May 2024 (for the interest period ending 20 May 2024) on its USD 250 million Senior Unsecured Callable Fixed Rate Social Bonds due May 2025 with ISIN NO0012496688 (the Senior Bonds) and its USD 50 million Subordinated Social Bonds due November 2025 with ISIN NO0012496696 (the Subordinated Bonds and, together with the Senior Bonds, the Bonds) . The failure to pay interest under the Senior Bonds will constitute an event of default under the terms and conditions of the Senior Bonds and will trigger cross default provisions under the Holding Company's other financial indebtedness.

The failure to pay interest under the Subordinated Bonds will only be deemed to constitute a default under the terms and conditions of the Subordinated Bonds if the failure to pay continues for 30 calendar days beyond the due date. The Holding Company is also not in a position to repay the principal or interest on its USD 60 million revolving credit facility, both becoming due for payment on 20 May 2024, resulting in a cross-payment default arising under the Senior Bonds.