The recently concluded Britam Corporate Bond has raised Ksh. 7.4 billion against a target of Ksh.3 billion, representing an over-subscription of 147.7 per cent.
The bond, which had a Ksh. 3 billion green shoe option, will see Britam retain Ksh 6 billion as approved by the Capital Markets Authority (CMA).
Making the announcement, Group Managing Director Dr. Benson Wairegi said, “The massive participation in the corporate bond is a validation of the confidence the market has in the Group. The funds will give us the additional impetus needed to take our Group to the next level of growth in line with our strategic plan.”
He also said that the achievement of Ksh.6 billion nullifies the earlier planned second tranche, which would have raised the balance from the first tranche.
Britam will utilize the funds to further regional and local expansion, acceleration of property development and to increase investment in private equity.
Commenting on the subscription, the lead arranger and CEO of Dyer and Blair My Paul Orem said, “The transaction saw great participation from leading fund managers, contributing 50.9 per cent, Bank and insurance companies jointly at 41 per cent and retail investors at 8.1 per cent of the total raised.”
Recently, Britam launched county strategy that will see the establishment of its presence in the 47 counties. This is aimed at building capacity at the county level and increasing points of contacts with consumers.
“The launch of the county strategy is the first step towards an intensified expansion plan that will see the opening of five additional branches across the country by end of the year. This coupled with our larger regional expansion strategy will be crucial catalysts to Britam becoming the largest diversified financial services company in sub Saharan Africa.
The corporate bond will be listed at the NSE at the end of the month
AUTHOR: BEN GUMO