Mbaru eyes listing regional bonds at the Nairobi bourse
Mr Jimnah Mbaru, chairman of Kenya Association of Stockbrokers and Investment Banks. PHOTO | FILE
Jimnah Mbaru, the new chairman of Kenya Association of Stockbrokers and Investment Banks (Kasib), says will focus on making the bourse the key regional bond trading centre.
Mr Mbaru, a former Nairobi Securities Exchange (NSE) chairman, said Kasib targets to have countries list bonds, in their preferred currencies, on the NSE. It also plans to follow up on the proposal by the Treasury to domestically list Kenya’s first sovereign bond.
The announcement is part of a six-point strategy released by Kasib’s newly elected board headed by the veteran investment banker.
“We will position the Nairobi Securities Exchange as the foreign currency denominated bond issuing centre. This shall involve pushing for the listing of the Kenyan sovereign bond at the NSE and attracting other countries in the region to issue foreign currency denominated bonds at the NSE,” said Kasib in a statement.
Kenya’s sovereign bond is currently exclusively trading on the Irish Stock Exchange but the government had earlier said it would apply to have the notes trade on the NSE.
“In addition, the issuer intends to make an application, after the notes are delivered against payment to be listed on the fixed income securities market segment of the Nairobi Securities Exchange,” said the preliminary prospectus on Kenya sovereign bond.
Mr Mbaru is the chairman of Dyer & Blair Investment Bank which was the co-manager of the sovereign bond that managed to raise $2 billion (Sh176 billion).
Industry players said Kasib’s plan is possible but the lobby still faces an uphill task.
Bond Market Association chairman John Mwaniki said Rwanda having successfully issued its sovereign bond without involving any Kenyan transaction advisers means Kasib will have to offer more to other potential issuers.
“It is a balancing act and one has to show what value addition you are giving,” said Mr Mwaniki.
Sovereign bonds are largely planned by country treasuries and central banks and are normally rarely outsourced, he added. Other priorities are the opening of a derivatives market and lobbying for more parastatals to list.
Realistic objectives
There has been no government corporation listing since Kenya Electricity Generating Company in 2006.
Kestrel Capital chief executive Andre DeSimone said all the objectives are realistic but face technical challenges.
Amish Gupta, a director at Standard Investment Bank, was elected vice chairman while Lucas Otieno becomes the secretary.
NIC Securities chief executive Catherine Karita will be the treasurer.
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