Mortgage provider Housing Finance (HF) is set to issue a Sh20 billion bond to fund home construction projects.
If the full amount is realised, the bond will be more than three times bigger than HF’s current market capitalisation of Sh6.3 billion, though details of the issue will only become clear after publication of the offer memorandum.
The financier on Friday received approval of the regulator to issue and list the bond on the Nairobi Securities Exchange. HF is seeking funds for multi million housing projects being undertaken by its newly revived construction subsidiary—the Kenya Building Society (KBS).
It has won approval to sell medium term notes to investors in denominations of Sh100, 000 each. The bonds will be issued as index-zero coupon notes which are sold at a nominal amount or at a discount and do not bear interest, mixed rate notes which bear interest over respective periods as the rate of interest applicable for any combination of fixed rate notes, floating rate notes, zero coupon notes. and index-linked notes.