Capital Markets

Centum Real Estate lists Sh3bn housing bond on NSE    

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Centum Real Estate managing director Samuel Kariuki. PHOTO | SALATON NJAU

Centum Real Estate Company has listed its Sh3 billion project bond on the Nairobi Securities Exchange (NSE), allowing investors to trade the security before it matures in 2023.

The listing will also help track the three-year bond’s performance, timely implementation of the projects and uptake.

“The listing gives investors flexibility and more options to cash in or re-balance their portfolios on a need basis during the life of the bond,” Centum Real Estate managing director Samuel Kariuki said.

NSE chief executive Geoffrey Odundo noted that there has been a rising investor appetite for debt securities in the market.

“The success of the bond and those of the other corporate debt issues is a clear indication of the depth of the capital markets as a good avenue to fund well-structured and innovative instruments,” said Mr Odundo.

The property developer, a subsidiary of listed Centum Investment Company #ticker:CTUM, is constructing 1,358 housing units in Ruaraka and Kasarani, as well as high-end duplexes at Two Rivers. Another 1,515 units, the firm said, are under market validation.

The real estate firm said it has attained a 77 per cent pre-sale level and deposit collections of Sh3.3 billion.

The company raised Sh3 billion in the first tranche of its targeted Sh4 billion with a greenshoe option of Sh2 billion, which is funding the housing projects.

“We expect vibrant trading of the Centum Real Estate Bond as it provides a relatively low risk investment, short term maturity and a relatively high coupon rate,” said Kabaki Wamwea, the Private Wealth Capital CEO.

The bond is secured by the projects, with the deposit collections flowing into a sinking fund.