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Kenya

Businesses urged to explore raising funds in the capital markets

NAIROBI, Kenya June 22-Kenyan businesses have been urged to explore capital raising options in the capital markets to reduce in reliance on credit to fund their growth and expansion.

This was during the inaugural Nairobi Securities Exchange(NSE) CFO conference which enlightened finance leaders on favourable funding models in the public markets.

The conference equally offered insights on emerging issues such as Environmental, Social and Governance (ESG) matters that continue to influence capital allocation decisions by investors as well as other developments including Green Bonds, Real Estate Investment Trusts and the Unquoted Securities Platform.

Speaking during the conference, Paul Mwai, Vice-Chairman, NSE noted that, “Domestic capital markets provide an alternative source of funding that offer better pricing and longer maturities providing companies the necessary time to grow thereby reducing repayment pressure as is the case of conventional financing methods”.

Reiterating his remarks, Geoffrey Odundo, Chief Executive, noted “Finance leaders have a more critical role to play in preparing for short-term and long-term financing related needs of companies in order to mitigate risks and propel growth”.

Wyckliffe Shamiah, CEO, Capital Markets Authority lauded the conference noting that it has set the foundation for a close working relationship that will catalyze capital raising initiatives, using public capital markets as the preferable avenue.

Recent issuers including Acorn Holdings Limited, East African Breweries Limited, Crown Paints PLC as well as the Kenya Mortgage Refinance Company commented the seamless and timely capital raising process they experienced during their respective issuances.

“The successful issues are proof of renewed confidence by investors in our market and point to brighter prospects for companies seeking to raise capital in the future. They also cement public capital markets position as one of the most efficient platform for raising long term capital for businesses” said Mwai.

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