CMA says row over NBK’s loan pact delaying Sh13bn rights issue

Sharp differences between the Treasury and the National Social Security Fund over the interpretation of a loan agreement signed between the National Bank of Kenya and the government have stalled the lender’s Sh13 billion rights issue, Kenya’s capital markets regulator has disclosed.

Capital Markets Authority (CMA) boss Paul Muthaura said in an interview the dispute is caused by the fact that the deed of covenant creating the NBK preference shares allowed for conversion to common stock but the shareholder approval termed them as non-redeemable.