In an effort to deepen the corporate bond market, the Capital Markets Authority (CMA) has approved the issue of a Ksh5 billion Medium Term Note Programme by British American Investment Company (Britam) to be used to fund strategic business initiatives.
Prior to giving the approval, the Authority reviewed information provided and is satisfied that it meets the eligibility requirements for Public Offering of Fixed Income Securities and Listing on the Fixed Income Securities Market Segment and is satisfied that contained in the second schedule of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002.
The bond will be issued in two tranches as follows; the first tranche will amount to Ksh3 billion and with the option to take up to an additional amount of up to Ksh1 billion in a green shoe option, while the second tranche will amount to Ksh2 billion.
Britam expects to use the funds to support several strategic initiatives including; real estate opportunities; private equity opportunities; local and regional business growth; and ICT investments.
