CMA boss Paul Muthaura sees companies coming back to the market to raise fresh cash to support growth strategies as the economy recovers from last year’s slowdown to a five-year low.
The Capital Markets Authority (CMA) expects improved corporate bond issuance after a dry 2017 on a rebounding economy.
Chief executive Paul Muthaura sees companies coming back to the market to raise fresh cash to support growth strategies as the economy recovers from last year’s slowdown to a five-year low.
“In any situation where there’s uncertainty, it becomes very challenging for any company to implement their growth strategy and come to the market,” Mr Muthaura said in an interview.
“We have been in a year (2017) of great uncertainty and with that uncertainty being closed off and with much strengthened growth that’s expected in the coming few years, we expect to see a complete turnaround.”
The Sh6 billion second tranche by East African Breweries #ticker:EABL was the only corporate offering on the market last year.
The market has been inactive after Chase and Imperial banks collapsed after issuing bonds in the market. Investors are yet to be compensated.
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