Nairobi Securities Exchange eyes trading of multi-currency bonds
SEE ALSO :U.S. Marine killed in Iraq identifiedHe was speaking during the ceremony to mark the listing and subsequent trading of the NIC Bank's Sh5.5 billion bond issue yesterday. Mwangi said under the new system it would be much easier for investors to compare the pricing of listed debt securities. "Decision making will be faster and this should spur further liquidity in the bond market," he said, adding that increased liquidity would boost investor appetite for debt securities list on the Exchange. NIC listed the first Tranche of Sh.5.5 billion bonds under its Sh 8 billion Subordinated Medium Term Note (MTN) Programme. "The NIC Bank subordinated MTN shows the growing popularity of listed, corporate debt as a source of funding for Kenyan companies," explained Mwangi.
SEE ALSO :Panic as hackers access sacco databaseThe proceeds of the bond issue would be used to support the bank's strategy to grow its corporate client base as well as enhance its branch channels to reach more retail and Small and Medium-Sized Enterprise (SME) customers. The issue that was launched in mid-August 2014 received offers amounting to Sh6.5 billion. The bond issue was up-scaled to Sh5.5 billion from the original Sh3 billion target. "The Bond's success is a vote of confidence on the bank's long-term growth strategy. The money will go towards strengthening our capital base so as to support growth in our loan book," said NIC Bank's managing director John Gachora.
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