The bond will be issued in two tranches with the first tranche amounting to Sh3 billion - with the option to take up to an additional amount of up to Sh1 billion in a green shoe option - while the second tranche will amount to Sh2 billion to be issued next year.
The offer opened on Monday and will close on
The listing on the Fixed Income Securities Market Segment of the Nairobi Securities Exchange is expected on
The notes will mature on
Britam Chief Executive Officer
"Some of the money could go to acquiring land and doing developments on the land that we have but right now we are doing the business cases. We have land in Mlolongo (10 acres), Ngong (21 acres) and in Kilimani (1.5 acres); we continue to look for more land in cities outside
The company is earmarking the 10 acre piece of land for a shopping mall, with the Kilimani piece of land ideal for a hotel.
Some of the property market segments earmarked include master planned communities, suburban outlet malls, commercial office parks, budget hotels and mixed use properties- retail, offices and residential properties.
"The design of this transaction and our solid fundamentals makes this bond issue an attractive investment vehicle for the investors. Apart from offering an attractive return of 13pc per annum, the bond will be listed on the Nairobi Securities Exchange, offering the investors an opportunity to trade and cash-in any time before the five year contract," said Wairegi.
On his part, Britam Board Chairman Ambassador
"We have sustained positive growth over the years driven by good performance of all business units within the group. Our regional expansion agenda is a significant catalyst for future growth. This program will provide a pivot to our long-term funding which will bolster the envisaged growth of the group. Investing in Britam offers the investors an opportunity for a diversified portfolio and also a portion of our growth narrative," said Ambassador Muthaura.
The company's shareholders approved a decision to acquire a 99 percent shareholding in
The shareholders ratified the decision by the board to acquire 14.85 million shares in
Britam has already a strong presence in
Last year the company bought a 25 percent stake in
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