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CIC to repay Sh5bn bond next week

Tom Gitogo
CIC Insurance Group CEO Tom Gitogo. FILE PHOTO | NMG 

CIC Insurance Group #ticker:CIC will next week pay back investors of its five-year Sh5 billion bond, their principal dues, making the underwriter the latest corporate bond issuer to retire its debt without going back to the capital markets for a rollover.

CIC issued the bond in October, 2014, with a coupon of 13 percent, meaning its redemption on October 2 will save the firm Sh650 million in annual interest expenses.

“The notes will upon redemption be delisted from the corporate bond list at the NSE,” the firm said in a notice on Wednesday

Although the firm had earlier declined to give specifics of how it is funding the settlement of debt, it recently put on sale 712 acres of freehold land in Kajiado and Kiambu counties in transactions that are expected to earn it upwards of Sh10 billion.

Insurance firm UAP Holdings in July paid back investors of its Sh2 billion five-year corporate bond using a loan from Stanbic Bank. Banking group I&M Holdings repaid its Sh3.6 billion bond in March this year.