CIC bond attracts 111 per cent oversubscription

CIC Insurance Group has announced a 111 per cent oversubscription on its Sh3 billion medium-term note programme, attracting a sum of Sh6.34 billion. The bond attracted subscription from across all market segments including local institutional investors, financial institutions, the insurance sector and the public. As a result of this, the company will exercise the Green Shoe option and accept an additional Sh2 billion from the total amount raised.

 "The funds raised will be used to drive the company's transformational business objectives focusing mainly on the real estate, regional expansion into South Sudan, Uganda and Malawi, new products targeting the micro insurance sector and recapitalisation of its subsidiaries and other corporate purposes," CIC Group Chief Executive Nelson Kuria said. The bond will be listed at the Nairobi Securities Exchange on October 15, 2015. "The oversubscription which has been achieved is an indication of the investing public confidence in CIC insurance Group strategy" said Kuria.