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Kenya

IFC to list Sh3b bond at Kenyan bourse

NAIROBI, Kenya, Aug 16 – The International Finance Corporation (IFC) has been granted approval by the Capital Markets Authority to issue and list a Sh3 billion bond on the Nairobi Stock Exchange.

The IFC will be seeking to issue the Kenyan shilling denominated medium term notes which are expected to mature in September 2015.

The CMA Chief Executive Officer Stella Kilonzo said in a statement they expect that the issue will deepen the Kenyan bonds market by attracting investors across the region especially with the signing of the East African Community Common Market Protocol.

“The issue will be open to local and foreign investors and given the profile of IFC we expect increased foreigner appetite for the bond, which should also serve as a benchmark for future issues in the Kenyan market,” Mrs Kilonzo said.

It is also expected that the issue will increase the profile of the Kenyan capital markets and provide a demonstration effect on its potential as a destination for other bonds issuers.

In approving the listing, CMA considered the application by IFC and satisfied itself that the Information Memorandum and Information Statement made adequate disclosure of material information in accordance with the requirements of the Capital Markets Act and regulations issued thereunder, to enable investors make an informed decision on the programme.

The CMA requires that the issuer must be a public company limited by shares and registered under the Companies Act (Cap 486) or any other corporate body. It also requires the issuer to have net assets of not less than Sh100 million.

Bond turnover has so far outshone equity trading this year. Data from the NSE shows that half year bond turnover stood at Sh158 billion against Sh41 billion in the equities market.
 

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