Micro-lender Real People debuts Sh1.6bn bond at Nairobi exchange
Real People CEO Daniel Ohonde. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
The credit only microfinance is seeking to increase its loan portfolio through the midterm note launched in early August targeting retail investors.
Capital Markets Authority acting CEO Paul Muthaura said that Real People had taken a bold step by trading on the NSE.
Micro-lender Real People started trading a Sh1.63 billion bond on the Nairobi Securities Exchange (NSE) on Wednesday.
The bond offer will be listed on the Fixed Income Securities Market Segment of the NSE and is set to earn investors returns at a rate of 13.65 per cent per annum.
The credit only microfinance is seeking to increase its loan portfolio through the midterm note launched in early August targeting retail investors.
Speaking during the launch, Capital Markets Authority (CMA) acting CEO Paul Muthaura said that Real People had taken a bold step by trading on the NSE.
“This is a significant statement by Real People of their willingness to put their best foot forward to be challenged and looked at very critically by the investing public,” he said.
In July, the lender opened up a Sh2.5 billion bond to the public to raise capital for onward lending to businesses across East Africa.
Investors have taken up Sh1.4 billion fixed rates notes and Sh270.3 million three-year notes under the first tranche of the Sh5 billion bond approved by the Capital Markets Authority.
The NSE is also seeking to diversify investment opportunities through the launch of derivatives, real estate development trusts, as well as exchange traded funds.
The bourse chief executive Geoffrey Odundo said the products are aimed at strengthening the capital market position of the exchange.
Real People received approval from the Capital Markets Authority early this month to raise a total of Sh5 billion in three tranches over the next five years.
“This is a significant milestone as the first credit only financial institution to have gone through the entire process and have the bond listed in the NSE,” company CEO Daniel Ohonde said.
Mr Ohonde said that the debt issue will be in two to three tranches of Sh2 billion, Sh1.5 billion and Sh1.5 billion over the next five years.
The firm has lent over Sh10 billion to over 25,000 SMEs over six years in East Africa and South Africa.
