World Bank arm to raise Sh3b from Kenyan market
By James Anyanzwa
The International Finance Corporation (IFC) wants to raise Sh3 billion from the local debt market.
The Capital Markets Authority (CMA) approved the issue and listing of the five-year bond, saying it will deepen the local bond market.
"In approving the listing, the Authority considered the application by IFC and satisfied itself that the Information Memorandum and Information Statement makes adequate disclosure of material information as per the requirements of the CMA Act and regulations issued thereunder, to enable investors make an informed decision," said Stella Kilonzo, the authority’s Chief Executive officer.
The medium term notes will mature in 2015.
READ MORE
State to shut down 25 entities, privatise others in new reforms
Why Kenya must move fast to invest in digital rights security
State, workers' pay tensions cloud function
Why the super-rich are ditching commercial property investments
S Sudan Central Bank Governor Rallies East Africans to Invest in Juba
Co-op Bank lines up billions for women-owned SMEs after German loan deal
Construction players protest state's bid to tax mining sector
Insurance sector players to explore use of AI in deepening uptake
Sugarcane farmers accuse AFA of 'siding with cartels' as prices drop
Growing demand for housing births modern mansions in Nakuru slums
In a statement yesterday, Mrs Kilonzo said the issue will increase the profile of the country’s capital markets and demonstrate its potential as a destination for other bonds issuers.
"The issue will be open to local and foreign investors and given the profile of IFC, we expect increased foreigner appetite for the bond, which should also serve as a benchmark for future issues in our market," she said.
Regional investors
She expressed optimism the issue will attract investors from the region particularly after the operationalisation of the East African Community Common Market Protocol on July 1.
The bond market is also expected to play a key role in mobilisation of domestic resources to finance the flagship projects identified in the country’s Vision 2030.
Over the years, there have been a number of initiatives undertaken to increase liquidity in the bond market including automation of the bond trading.
Consequently, Treasury and corporate bond settlement cycles at the NSE have dropped to three days after the day of agreement.
This followed the automation of bond trading and immobilisation of the securities by all issuers.
- State to shut down 25 entities, privatise others in new reforms
- Flooded petrol stations to be shut
- Forget miraa: Discovery of minerals stirs up Meru locals