NIC Bank’s Sh3bn bond issue opens

It is a nerve-racking race as some corporations increase executive pay by up to 83pc a year. PHOTOS | FILE 

By JOHN GACHIRI and CHARLES MWANIKI

NIC Bank opened its Sh3 billion bond Thursday, the first tranche of its Sh8 billion bond programme to run for five years.

The initial tranche will offer investors a 12.5 per cent yield which is slightly lower than the other 5-year bonds, Britam and UAP yielding 13 per cent.

Transaction advisors expect good subscription since the rate is close to previous heavily issues.

“We expect good uptake for the issue, based on the yield and the NIC Bank investment case,” said NIC Capital managing director Maurice Opiyo.

Interest rates have also been falling in recent government paper auctions due to high liquidity which analysts said was expected.

At the NSE Kenya Airways ceded further ground on Thursday as the effects of Ebola continued. It has lost 8.3 per cent so far this month.

The share closed two per cent lower at Sh9.40 as investors remain uncertain after disruption of flights to West Africa, one of its key markets.