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I&M Bank gets regulator’s nod to raise Sh10 billion

NEWS
By JAMES ANYANZWA | November 16th 2013

By JAMES ANYANZWA

NAIROBI, KENYA: The Capital Markets Authority (CMA) has granted approval to I&M Bank Ltd to raise Sh10 billion through the debt market.

The medium-term note will be listed on the fixed income securities market segment of the Nairobi Securities Exchange (NSE).

Investors will acquire I&M Bank notes in denominations of Sh100,000 each.

 In a statement yesterday, the market regulator confirmed the information submitted by the bank in the final information memorandum meets the set standards.

It will enable investors make an informed decision on the medium-tern note programme. “Approval is hereby granted to I&M Bank Ltd to offer for purchase in Kenya and list on the fixed Income Securities Market Segment of the Nairobi Securities Exchange the Medium Term Notes of Sh10 billion,” said CMA.

CMA has also urged county governments to consider issuing bonds rather than hike fees, charges and rates to offset their financial shortfalls.

CMA said it would engage the national government to ease conditions for capital raising initiatives at the county level. Chairman Kung’u Gatabaki said there is a justifiable scope to further interrogate the provisions of the constitution, which requires county governments to seek national government clearance or guarantee for borrowing.

“There are opportunities accruing to county governments in accessing capital markets for long-term funding of their development need,” he said.

“We are going to engage the national government to relook into the whole idea of guaranteeing county government bonds.”

The local debt 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 last 10 years, the capital market has raised over Sh1 trillion through bonds and equities while over Sh500 billion has been raised in the last three years notwithstanding the global financial crisis

The value of listed securities currently at Sh1.88 trillion is more than 50 per cent of Kenya’s gross domestic product.

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