Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
NIC Bank Managing Director John Gachora says the money will support the banks growth plan in adding more branches in Kenya and the region/FILE

Kenya

NIC Bank Sh5.5bn bond lists on bourse

NIC Bank Managing Director John Gachora says the money will support the banks growth plan in adding more branches in Kenya and the region/FILE

NIC Bank Managing Director John Gachora says the money will support the banks growth plan in adding more branches in Kenya and the region/FILE

NAIROBI, Kenya, Sept 17 – NIC Bank has listed its Sh5.5 billion bond at the Nairobi Securities Exchange (NSE).

NIC Bank Managing Director John Gachora says the money will support the banks growth plan in adding more branches in Kenya and the region.

Gachora says the money will also go towards strengthening the capital base to support growth in their loan book for Small and Medium Enterprises (SMEs) and corporate segments.

He says institutional investors received 90 percent of the issue while the remaining 10 percent went to retail investors.

The bond received offers of Sh6.5 billion from the original target Sh3 billion leading to the upsize of the bond to Sh5.5 billion.

This was the first tranche under the Sh8 billion Medium Term Note Program.

The bond issue is part of a major capital-raising program initiated by NIC Bank as it seeks to grow both in Kenya and the region.

The company is also seeking to raise Sh2 billion in a rights issue subject to regulatory approval.

On his part, NIC Bank Chairman James Ndegwa said the bank has decided to go for a combination of debt and equity as the most optimal option to finance business growth.

NSE outgoing Chief Executive Officer Peter Mwangi said they shall continue to deepen the Bond Market through innovations.

Advertisement. Scroll to continue reading.

“The NSE is currently in the process of introducing a new bond trading system which will allow reporting of bond prices by yield and support trading of bonds denominated in different currencies including the Government of Kenya Sovereign Bond,” he said.

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...

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

Coronavirus

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

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...