NAIROBI, Kenya, May 18 – Centum Investment Company Limited has listed Sh6 billion fixed rate and equity linked notes at the Nairobi Securities Exchange (NSE) following approval last week by the Capital Markets Authority.
The note issue will close on June 5, 2015.
The issue which will be on the Fixed Income Securities Market Segments (FIMS) at the bourse will be for a period of five years.
Centum CEO James Mworia says the note issue will be a component of the funding applied to develop Centum’s proprietary opportunities specifically in the financial services, energy and real estate sectors.
“The notes offer the public an opportunity be a part of Centum’s growth strategy for the 2014-2019 period which focuses on development of investment opportunities in eight key sectors , Real Estate, Energy, Financial Services, Education, Health, ICT, Agribusiness and FMCG,” he said.
The notes to be issued are senior unsecured fixed rate notes as well as senior unsecured equity linked notes (ELN).
Interest on the notes will be payable semi-annually while the senior unsecured fixed rate notes will be issued at fixed interest rate of 13 percent.
“The Senior Unsecured Equity Linked Notes are made up of two components, the first one being a fixed rate component issued at an interest rate of 12.5 percent. The second one will be a variable component which will carry an upside of up to 10 percent of the redemption price, subject to a 25 percent increase of Centum’s net asset value at the time of their maturity,” he added.
“This will be the first ELN issued, in which the variable return can be traded separately on the NSE. James Mworia, the Group CEO, explained that the structure of the note issue is also a first in Kenya, in keeping with Centum’s theme to continuously innovate and helping to further deepen Kenya’s capital markets,” Mworia said.
At the time of issuing the last bond in September 2012, Centum had total assets worth Sh15.7 billion and since then Centum has doubled its total assets, which stood at Sh36.8 billion as at December 31, 2014.
Centum currently has a credit rating of A for both long and short term credit quality according to the Global Credit Ratings Company (GCR).
The Issue is arranged jointly by Dyer & Blair Investment Bank and Equity Investment Bank as the Lead Transaction Advisers.
Coulson Harney are the Legal Advisors, PWC, the reporting accountants, K-Rep bank and Co-operative bank as the receiving banks, C&R as registrar and Fiscal Agent, and Ropat Trust Company as the Note trustee.