NAIROBI, Kenya, Jun 19 – Centum Investments five-year corporate bond worth up to Sh6 billion has been oversubscribed by 38 percent attracting bids worth Sh8.3 billion.
The bond is made up of a fixed-rate component and an equity-linked portion that will give a variable return determined by the firm’s net asset value.
The total amount accepted for the fixed rate notes is Sh3.9billion while for the equity linked notes is Sh2.1billion, with the fixed rate notes and equity linked notes having coupon rates of 13 percent and 12.5 percent respectively.
The firm plans to fund new investments in power plants and real estate.
Among the projects include the Two Rivers project, a lifestyle mall set to open in October this year and which will be one of the largest retail malls in Sub-Saharan Africa.
The project which has already got Sh14 billion financing in debt and equity, will consist of retail, offices, hotels and apartments.
READ: Centum’s Two Rivers project gets Sh14bn financing
The developments in the pipeline are on a 210,000 square feet space which will be complete in 2016. They include a 3 star hotel, City Lodge Hotel, and over 100 luxury apartments that will go to market by May 2015.
The firm power projects include the Coal Power Plant in Lamu which requires about $2 billion (Sh183 billion), as well as geothermal project in Olkaria.
The firm has bought K-REP Bank 66 percent stake at K-REP Bank at Sh2.5 billion, in a bid to transform the bank.
The firm recently posted a 160 percent increase in the net profit to hit the Sh7.9 billion mark in profits the year ending March 2015 attributable to dividend income as well as realized gains from transactions made during the period.
During the period, the firm sold its stake at UAP Holdings where it realised about Sh5.2 billion.
READ: Centum profit rises 160pc, crosses Sh7bn.
The results have translated into earnings per share of Sh10.46.
The company’s investment income increased by 142 percent to Sh11.8 billion from the previous year’s Sh4.9 billion.