KMRC bond set to pay interest above State securities

KMRC chief executive Johnstone Oltetia. FILE PHOTO | NMG

The Kenya Mortgage Refinancing Company (KMRC)’s Sh1.4 billion bond is paying a premium of one percentage point over government bonds with a similar life.

Analysis of the mortgage refinancer’s debut bond issue by Sterling Capital says that the 12.5 percent interest the company is paying is well above the average of 11.5 percent on government bonds with the same years to maturity.

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Note: The results are not exact but very close to the actual.