CMA approves issuance by Britam of a Ksh5 billion corporate bond with a green shoe option of Ksh1 billion
Nairobi, June 6, 2014…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.
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.
The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest.