News Column

Britam Gets Ok to Issue Sh5 Billion Bond

June 8, 2014

Constant Munda

British American Investment Company's stock at the Nairobi Securities Exchange traded at an almost flat price on Friday despite news of approval of the firm's planned bond. Britam intends to raise Sh5 billion through a corporate bond which has received a green light from the Capital Markets Authority.

The planned medium term note will have a green shoe option of Sh1 billion - meaning that Britam will accept offers of up to Sh1 billion above the targeted Sh5 billion in case of an over subscription.

Britam closed at Sh17.65, a slim 0.57 per cent higher that Thursday's closing. The debt facility will be floated in two tranches of Sh3 billion, which has the green shoe option, and Sh2 billion in the second issue.

The additional cash will be spent on ongoing and new real estate projects, investment in private firms, growth of Kenyan and regional business, and upgrade of the ICT investments, Britam had said in its application documents.

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Source: AllAfrica

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