Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

CMA approves Sh5bn Britam bond

The bond will be issued in two tranches with the first amounting to Sh3 billion with the option to take up an additional amount of up to Sh1 billion in a green shoe option, while the second tranche will amount to Sh2 billion/FILE

The bond will be issued in two tranches with the first amounting to Sh3 billion with the option to take up an additional amount of up to Sh1 billion in a green shoe option, while the second tranche will amount to Sh2 billion/FILE

NAIROBI, Kenya, Jun 6 – The Capital Markets Authority (CMA) has approved the issue of a Sh5 billion corporate bond by the British American Investment Company (Britam) medium term note to be used to fund strategic business initiatives.

The bond will be issued in two tranches with the first amounting to Sh3 billion with the option to take up an additional amount of up to Sh1 billion in a green shoe option, while the second tranche will amount to Sh2 billion.

A green shoe option is where Britam is allowed to float the additional Sh1 billion in the event the initial Sh3 billion offer is oversubscribed.

The company expects to use the funds to support several strategic initiatives including real estate, private equity, local and regional business growth and Information Communication and Technology (ICT) investments.

CMA says Britam has met the eligibility requirements for Public Offering of Fixed Income Securities and Listing on the Fixed Income Securities Market Segment.

“Prior to giving the approval, the Authority reviewed information provided and is satisfied that it meets the eligibility requirements for Public Offering of Fixed Income Securities and Listing on the Fixed Income Securities Market Segment and is satisfied that contained in the second schedule of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002,” CMA said.

Last month, The company announced some board changes with the retirement of Bocar Elimane Dia who retired by rotation and did not offer himself for re-election as a director of the company.

Tanui Ghulati also stepped down from the directorship of the company. Britam also acquired a 99 percent stake in Real Insurance Company in February 2014.

In 2013 the company recorded a 12 percent rise in its profit before tax to hit Sh3.2 billion for its full year ending December 31, 2013.

Advertisement. Scroll to continue reading.
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...

Headlines

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

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...

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...