Real People Kenya Ltd raises Sh1.63b from bond issue

Real People Kenya Ltd, a micro-finance institution providing business finance to entrepreneurs, has raised Sh1.63 billion from a corporate bond issue.

The first tranche under the Sh5 billion programme was offered in three-year and five-year fixed rate notes. The bond saw investors take up Sh1.36 billion in five-year fixed rate notes and Sh270 million in three-year fixed rate notes.

Making the announcement, Chief Executive Officer Daniel Ohonde said, “The funds will help provide the additional impetus needed to take our business to the next growth level in line with our strategic plan.”

He also indicated that the majority of the subscribers were institutional investors. Commenting on the subscription, Maurice Opiyo, the Managing Director for NIC Capital, said: “The issue saw great participation from local and foreign investors taking up 79 per cent and 21 per cent respectively, amid tight liquidity conditions prevailing in the market.”

Real People Kenya Ltd will utilise the funds to further boost the company’s lending capacity.

The corporate bond is scheduled to be listed on the Fixed Income Securities Market Segment of the Nairobi Securities Exchange on August 19, 2015.