M-Akiba is now listed on the Nairobi Securities Exchange (NSE) after raising a total of Ksh197 million over the two weeks in which it was on offer, shy of the Ksh250 million target.
The listing of the government bond that in 2017 became the first in the world to see a government raise cash for budgetary support through a mobile platform, has been approved by the Capital Markets Authority following the 79% subscription rate that attracted 82,829 new registrations.
Nearly a week after journalists attended a failed press conference that was meant to commemorate trading of the re-opening of M-Akiba, a press statement sent to newsrooms said the government bond now has over 450,000 investors.
“The 79% subscription rate is a clear indication of Kenyans investment appetite and an affirmation of the need for more innovative financial products in our market.”
NSE Chief Executive Geoffrey Odundo
The tranche, which seeks to leverage Kenya’s increased mobile phone penetration, attracts an interest of 10% with investors able to participate by investing a minimum Kshs. 3,000. The bond will be redeemed on September 7, 2020 and will have three interest payments dates; September 9, 2019, March 9, 2020 and
September 7, 2020.
So far, the government has paid out interest worth Ksh59.67 million, the Central Depository and Settlement Corporation (CDSC) which pays the interest on behalf of the state, said.
CDSC chief executive Rose Mambo said, “Since the first issue in March 2017, CDSC has paid out, on behalf of the Government, a total of Ksh47,282,500.10 in interest, to M-Akiba investors. CDSC paid an additional Kshs.12,387,500.00 on Monday, March 11, 2019.”
On March 12, a day after the most recent interest pay out, journalists had attended a press conference where the numbers were expected to be revealed. The press conference was cancelled with reporters being told that the numbers had not been fully reconciled. Third party corroboration had also yet to be done, authorities at the bourse said.
[See Also: Ehtipian Airlines crash victims’ families given charred soil to bury]
2 Comments