Kenya: NIC Capital, the investment banking subsidiary of the NIC Bank Group, has been mandated as the Lead Arranger to help leasing firm Vehicle and Equipment Leasing Limited (VAELL) raise up to $95 million (Sh8.4 billion) through an asset-backed bond issue.
NIC Capital is expected to act as the lead arranger and placing agent in the deal, which now awaits regulatory approval. This is the first asset-backed bond issue in the market under the Capital Markets (Asset Backed Securities) Regulations, 2007. NIC Capital Managing Director Maurice Opiyo expressed optimism about the asset-backed securities deal.
"The company will be using the proceeds to support their balance sheet growth by creating additional assets," he said. VAELL Managing Director Mike Mulili said the market has started seeing the benefits of leasing equipments and vehicles and this has seen the firm grow its business.