CIC Group to raise Sh5bn through bond

CIC Group chief executive officer Nelson Kuria during the release of financial results for 2013 at a Nairobi hotel on March 12, 2014. PHOTO | SALATON NJAU |  NATION MEDIA GROUP

In Summary

• Bond to be issued in two tranches of Sh3 billion and Sh2 billion.
• Minimum subscription of the bond has been capped at Sh100,000.

By NATION CORRESPONDENT
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Insurance company, CIC Group, has received regulatory approval to raise Sh5 billion through a corporate bond.

The go ahead, granted by the Capital Markets Authority paves the way for the underwriter to issue the bond in two tranches of Sh3 billion and Sh2 billion.

CIC Group’s chief executive officer, Mr Nelson Kuria said the money accrued from the bond will be used for business expansion in the region and into the real estate sector. It will also be used to recapitalise its subsidiaries.

“The real estate sector is on an upward curve at the moment, and we also want a share of the pie. Our subsidiary business is also starting to gain traction with South Sudan already operational,” Mr Kuria said.

He further said the insurer will be starting operations in Uganda before end of the end of this year.

RIDE ON SUCCESS

CIC will be riding on the success already attained by financial services firms, Britam, UAP and mid-tier lender, NIC Bank, whose recent corporate bonds were oversubscribed.

Minimum subscription of the bond that will be managed by NIC Capital and Kingdom Securities Limited has been capped at Sh100,000.

The co-operative movement insurer has a presence in Kenya and South Sudan