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.
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.