CIC Insurance Group medium term note raises Kshs 6.34 bn

Next Step: The bond will be listed at the Nairobi Securities Exchange on the 15th of October 2015.

The CIC Medium Term Note Program has raised Kshs. 6.34bn, an over-subscription of 111pc over the initial issue of Kshs 3bn.

In a statement, Group Chief Executive,CEO, Nelson Kuria said they received subscription from across all market segments, among them local institutional investors, financial institutions, the insurance sector and the general public.

“As a result of this, the company will exercise the Green Shoe option and accept an additional Kshs. 2bn from the total amount raised,” said Mr. Kuria. 

A green shoe option refers to a clause contained in the underwriting agreement of an Initial Public Offering (IPO). Also known as an over-allotment provision, it allows the underwriting syndicate to buy up to an additional 15pc of the shares at the offering price if public demand for the shares exceeds expectations and the stock trades above its offering price.
Mr. Kuria said the bond will be listed at the Nairobi Securities Exchange (NSE) on the 15th of October 2015, indicating that the oversubscription achieved is an indication of the investing public confidence in CIC insurance Group strategy. 

The funds raised will be used to drive the company’s transformational business objectives focusing mainly on the Real Estate Business, Regional expansion into South Sudan, Uganda and Malawi as well as new products targeting the micro insurance sector and recapitalization of CIC’s subsidiaries.