Capital Markets

NHC to name Sh5bn bond adviser in July

National Housing Corporation (NHC) is finalising selection of a consultant who will handle its Sh5 billion bond.

NHC general manager for finance George Kinyanjui says the main transaction adviser will be selected in the next three weeks and the winner is expected to help the State property developer look for other service providers for the upcoming bond.

“The main consultant will work with our in-house team to get other consultants,” said Mr Kinyanjui at a company briefing.  The Sh5 billion bond is part of a Sh10 billion medium-term note programme whose proceeds will be used to construct up to 6,000 units in the next three years.

The venture into the capital markets to raise Sh5 billion was announced at the beginning of the year but the roll-out has been slow due to delays in getting approvals.

The houses that will be a mix of apartments, bungalows and maisonettes will be put up in Kisumu, Eldoret, Mombasa and Athi River. The agency is trying to diversify its sources of funding to enable it construct some 30,000 units by 2017.

Some of the housing units that will come up will be constructed using Expanded Polystyrene (EPS) panels from the company’s Mavoko-based plant, a move expected to bring down costs.