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PRESS RELEASE

  

CMA observes enhanced confidence in the corporate bond market

 

Nairobi, 26 October 2021…The Capital Markets Authority (CMA) has noted enhanced issuer and investor confidence in the corporate bond market with the oversubscription of 345 percent reported for the East African Breweries Plc (EABL) medium term notes.

CMA had approved the issuance and listing of a five-year, fixed rate medium term note seeking to raise Kshs11 billion, but EABL received applications for nearly Ksh38 billion, signaling enhanced interest in the corporate bond market.

‘I am delighted with the performance of the EABL Medium Term Note which is a testament of the renewed interest in the corporate bond market with growing issuer and investor confidence.’ CMA Chief Executive Wyckliffe Shamiah noted.

He added that in the last 11 months, the Authority has approved the issuance and listing of the Centum Investments Company Plc Kshs4 billion medium-term note with a Ksh2 billion green shoe option, and the Kshs8 billion multicurrency Family Bank medium-term note. The latter recorded an oversubscription of 147 percent. As of June 30, 2021, the bond market turnover stood at Kshs301 billion, compared to Kshs.228 billion registered in Quarter 3, 2020, recording a 32 percent increase.

The proceeds of the EABL bond will be applied to various business requirements including working capital and capital expenditure in EABL and its subsidiaries in Kenya and within East Africa.

The medium term note programme will offer investors an interest rate of 12.25 percent per annum payable semi-annually and will be listed on the Nairobi Securities Exchange on 1 November 2021.

ENDS

  

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. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on This email address is being protected from spambots. You need JavaScript enabled to view it.

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