Real People Kenya Ltd has received approval from the Capital Markets Authority (CMA) to issue up to Ksh5 billion bond in the Kenyan market.
CMA also granted the lender approval to list the notes on the Fixed Income Securities Investment Segment of the Nairobi Securities Exchange. Real People operates as a credit only Micro Finance Institution (MFI) and intends to use the proceeds raised from the bond to fund its core lending business in the market.
Mr Daniel Ohonde, the CEO for Real People in East Africa said, the debt issue will be in three tranches of Ksh2 billion, Ksh1.5 billion and Ksh1.5 billion over the next 5 years. “The approval by Capital Markets Authority allows us to raise the first tranche of Ksh2 billion,” he said.
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NIC Capital Ltd is the Lead Arranger for the transaction while Coulson Harney Advocates are the Legal Advisers. According to NIC Capital MD Maurice Opiyo, the bond provides the company an opportunity to tap the favorable conditions prevailing in the debt market to raise additional capital as it pursues its strategic objectives.
“Investor appetite for debt securities has been positive going by the success of recent bond issues,” said Mr Opiyo.
The minimum lot investors can apply for the bond is Ksh100, 000.
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