Britam enters Rwanda as its Sh6bn bond debuts in bourse

Mr Benson Wairegi, Britam MD. The firm has expanded its business in Rwanda with Sh256 million capital in a bid to tap into the uninsured population. Photo/FILE  NATION

In Summary

• Britam plans to increase its investments across Eastern and Southern Africa with the Sh6 billion war chest.
• Its entry into Rwanda is part of a regional expansion plan it is spearheading with the funds it raised through a corporate bond.

By NATION CORRESPONDENT
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Investment firm, Britam, has expanded its business in Rwanda with Sh256 million capital in a bid to tap into the uninsured population.

 

This comes a few weeks after the company raised Sh6 billion in an over-subscribed bond, which started trading on the Nairobi Securities Exchange on Friday.

Its entry into Rwanda is part of a regional expansion plan it is spearheading with the funds it raised through a corporate bond.

“We have always been keen on expanding into emerging markets. This particular strategy is what informs our East African expansion drive.

“We already have a presence in Kenya, Uganda and South Sudan. Rwanda thus completes our current footprint in the region,” Britam’s group managing director Benson Wairegi, said. At the moment, only 2.3 per cent of people in Rwanda have insurance, but Britam expects to increase this even as it offers asset and property management services in the new market.

Britam plans to increase its investments across Eastern and Southern Africa with the Sh6 billion war chest.

The firm has an eye on property development, investment in private equity as well as information and communication technology. The bond, which was launched two months ago, received bids worth Sh7.323 billion, a 144 per cent over-subscription.

GREEN SHOE OPTION

The first tranche meant to raise Sh3 billion had a green shoe option for an additional Sh3 billion.

Following the oversubscription, Britam exercised a green shoe option to retain the full amount of Sh6 billion. “We’re happy to note that the bond market has opened up and that Britam has taken this up successfully as one of the ways to raise funds,” Britam board chairman Francis Muthaura noted.

The firm’s acquisition of a 99 per cent stake in Kenya’s Real Insurance in December last year has seen it become the largest Pan African insurer in East and Central Africa.