From left: Britam Note Trustee Robert Ndung’u, Group MD Benson Wairegi and director Peter Munga at Britam Tower during a meeting with the noteholders in Nairobi October 2, 2018. PHOTO | SALATON NJAU | NMG
The approval means Britam will pay back the Sh6 billion on November 12 for a facility that was to mature on July 15 next year, shortening the period for paying interest that amounted to Sh780 million annually.
The repayment comes months after the firm, which has insurance, asset management and property development businesses, received Sh5.7 billion from a private Equity Fund AfricInvest for the sale of new shares.
Investors who lent Britam #ticker:BRIT Sh6 billion through a bond Tuesday gave the firm approval to retire the borrowing early, saving the company hundreds of millions of shillings in interest payments.
The approval means Britam will pay back the Sh6 billion on November 12 for a facility that was to mature on July 15 next year, shortening the period for paying interest that amounted to Sh780 million annually.
The repayment comes months after the firm, which has insurance, asset management and property development businesses, received Sh5.7 billion from a private Equity Fund AfricInvest for the sale of new shares.
“The board has decided on the early redemption of the bond as the investment made using funds from the bond has generated sufficient returns,” said Britam chief executive officer Benson Wairegi during a meeting with the bond-holders yesterday.
The firm borrowed the Sh6 billion in 2014 with an interest rate of 13 per cent and the early repayment reflects the firm’s increased cash flow.
Britam used the funds for expansion in Kenya and the region, property development and investment in private equity, especially at the Nairobi Securities Exchange.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
