Centum bond oversubscribed by 38pc

Centum Investment Company said on Thursday, its Sh6 billion bond was 38 per cent oversubscribed. Investors offered Sh8.31 billion for the five-year bond, which has a fixed-rate component and an equity- linked one. It will be listed on the Nairobi Securities Exchange.

“The bond uptake is mostly by local investors, a strong indicator of Kenyans’ confidence in the Centum growth strategy,” James Mworia, CEO of the company, said in a statement. The cash will be used to fund Centum’s investments in financial services, energy and real estate. The equity-linked note, which will offer investors higher returns based on the movement of the company’s net asset value, received demand worth 3.48 billion shillings, Centum said. Pre-tax profit for the company, which invests in listed and private firms, jumped 120 per cent to Sh8.82 billion in its year ended in March. —Reuters