Centum Investment’s bond offer has been oversubscribed with the listed firm attracting Sh8.31 billion, 38 per cent more than the Sh6 billion that was initially targeted.
Centum’s chief executive James Mworia said that the heavy demand for the firm’s second bond was mainly from local institutional investors.
“The bond uptake is mostly by local investors and is a strong indicator of Kenyans' confidence in the Centum growth strategy and most importantly, their increasing appreciation of what local companies are doing to grow our economy,” said Mr Mworia.
The bond proceeds will go towards real estate, energy, financial services, education, health, ICT, agribusiness and FMCG, the eight sectors that the investment firm is focussing on over the next five years.
The five-year bond, which had a fixed and equity-linked component, will be listed on the Nairobi Securities Exchange on June 30.
The fixed notes had a 13 per cent annual coupon rate while the equity-linked notes had a 12.5 per cent coupon rate and variable component that will depend on the company’s performance.
