, NAIROBI, Kenya, Aug 26 – Jamii Bora Bank has announced a two percent over-subscription of its recent corporate bond offer via private placement.
The bank was seeking Sh1 billion with a five year tenure that was priced at 13.3 percent per annum.
Jamii Bora Chief Commercial Officer Timothy Kabiru says the offer that opened on July 15, 2013 received 91 applications with an average value of Sh11.2 million totalling to slightly over Sh1 billion.
“We received about 91 applications. Approximately 80 percent was from institutional investors and 20 percent was from the retail segment, we will be making a small refund of Sh21 million following a meeting with our bond allocation committee who have accepted Sh1 billion in applications,” he said.
Kabiru said that this will facilitate the bank in its continued penetration into the microfinance enterprise and housing sector as well as diversifying its funding base.
“This is going to go a long way in supporting our rapid growth, we are planning to enter into the agri-business market where 60 percent of Kenyans draw their livelihood from directly or indirectly,” he said.
He revealed that the bank has just concluded a five year strategy with the help of USAID that will help them to penetrate the agribusiness sector.
He said the bond will also see it open at least one branch a month for the next three years and have at least physical presence in all 47 counties.
The bond will commence trading over the counter on August 26, 2013 administered by Standard Investment Bank and Faida Investment Bank.