World Bank arm to raise Sh3b from Kenyan market

By James AnyanzwaThe 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.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 investorsShe 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.

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World Bank arm to raise Sh3b from Kenyan market

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