By Elisha Kamau
Britam’s Kshs. 6 billion
bond has started trading at the Nairobi bourse with the proceeds expected to fund
local and regional expansion, property development and increase investment in
private equity.
The medium term note that
was launched in mid June 2014 targeting retail, high net worth and
institutional investors, received a 144 per cent over-subscription netting Kshs. 7.323 billion.
The first tranche was to
raise Kshs.3 billion and had a green shoe option for an additional Kshs. 3 billion
as per the Supplementary Information Memorandum approved by the Capital Markets
Authority (CMA).
As a result of the over- subscription,
Britam exercised the green shoe option to retain the full amount of Kshs. 6
billion.
“We are happy to note that the bond market has
opened up and that Britam has taken this up successfully as one of the ways to
raise funds. We encourage other players in the industry to also take up such
opportunities so that we build our bond market,” noted Britam Board
Chairperson, Dr. Amb. Francis Muthaura.
Dr. Amb. Muthaura added
that: “We are also happy that we have joined companies that have successfully
listed their bonds at the Nairobi Securities Exchange. At this stage, we
continue to play a big role in the financial sector.”
Commenting at the NSE
offices, NSE Chief Executive Officer, Peter Mwangi noted that “It’s good to see
that there is a growing interest in the bond market in the country. In the last
one year, we have seen various organizations take on bonds as ways to raise
funds including Shelter Afrique, I&M Bank and now Britam.”
Also speaking at the bell
ringing ceremony, Britam Group Managing Director, Dr. Benson Wareigi noted
that: “We wish to thank CMA,NSE and transactional advisors for their support
throughout the process without who we would not have made it this far.”
The process was led by Dyer
and Blair Investment Bank as the transaction advisors, PwC - the reporting
accountants, Coulson Harney – legal advisors, Image Registrars – registrars and
Equity Bank- the receiving bank.
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