Mr Paul Njaga, Chase Bank chief executive officer. PHOTO | FILE
By EDWIN OKOTH
In Summary
- This will be the second successful listing of a corporate paper on the NSE this year after the Sh5 billion first tranche of EABL's 12.25 per cent, 3 year Sh11 billions note went to the secondary market in April.
Chase Bank's first tranche of its Sh10 billion 7 year
multi-currency bond has started trading on the secondary market at the
Nairobi Securities Exchange (NSE) after a successful listing on Monday.
The listing now opens an opportunity for investors who missed to participate in the offer opened last month.
The first tranche expected to raise Sh3billion was oversubscribed by 61 per cent, netting in Sh4.8 billion.
Chase Bank Chairman Mr Zafrullah Khan said the
listing will enhance the bond’s liquidity, while providing a good
quality investment avenue for investors.
"The performance and listing not only highlights
the confidence in the Chase brand, but also investor confidence in
corporate bonds. This is in line with the growth of alternative
investment opportunities within the Capital Markets as outlined under
the Vision 2030,” he said.
The bank exercised a Green Shoe Option to ensure that all the investors who put in an application received an allocation.
The offer couponed at 13.25 per cent and was
expected to raise funds for the mid-tier bank to lend to agribusiness
and youth entrepreneurs.
Chase Group Managing Director Mr Duncan Kabui
singled this fact out for special mention due to the fact that though
the bank was expanding its footprint, its relationship with its
customers remained the main point of focus.
“Customer numbers grew 15.6 per cent to 375,000 in March 2015, up from 320,000 in December last year," Mr Kibui said.
This will be the second successful listing of a
corporate paper on the Nairobi Securities Exchange in 2015 after the Sh5
billion first tranche of East African Breweries' 12.25 per cent, 3 year Sh11 billions note went to the secondary market in April.
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