Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Kenya mobile firm gets CMA nod

NAIROBI, Kenya, Oct 6- Mobile telephony operator Safaricom has received the nod from the Capital Markets Authority (CMA) to raise Sh12 billion through a corporate bond issue.

In an advertisement on Tuesday, Safaricom said the issue to be offered under the domestic Medium Term Note Program has been split into tranches, the first of which is set to mature in five years.

“In exercise of the powers under section 30A of the Capital Markets Act, (CMA) has granted an approval to Safaricom Limited for the issue of Floating Rate and Fixed Rate Medium Term Notes of the aggregate principal amount of up to Sh12 billion,” the advert said.

The operator is looking to raise Sh5 billion in the first phase which opens on Wednesday and closes on October 29.

Allocation will be made on October 30.

Investors have been requested to pick copies of the Information Memorandum (IM) the pricing supplement and application forms from either Safaricom offices, Livingstone Registrar, CfC Stanbic Financial Services or Kestrel Capital from October 7.

The advertisement did not include the interest rate that investors will receive although it will be a mix of unsecured fixed and floating rates.

Money raised from the bond will form part of greater pool of funding for the firm’s anticipated capital expenditure.

The final tranche is expected to be launched in 2010 although the timing will be based on market liquidity.

Advertisement. Scroll to continue reading.

The successful completion of this offering will bring Safaricom\’s total funding from the Kenyan debt markets to Sh20 billion.

This is the operator’s second public bond issuance since 2001.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...