Microfinancier gets CMA nod to list Sh5bn bond

Money Markets

 

Equity Bank launched operations in Uganda in July 2008 and had grown the subsidiary to more than 31 branches by the end of last year. PHOTO | FILE 

\By NEVILLE OTUKI

In Summary

• The bond will be issued in three tranches —the initial Sh2 billion, followed by Sh1.5 billion and another Sh1.5 billion.

Real People is set to be the first microfinancier to issue and list a bond in Kenya, after it received approval from the Capital Markets Authority (CMA).

Real People Kenya targets to raise Sh5 billion over five years, paving the way for other microlenders grappling with high cost of financing to raise cash from the bond market.

The non-deposit taking firm plans to use the cash to boost lending to its customers.

“The approval by Capital Markets Authority allows us to raise the first tranche of Sh2 billion,” said Real People East Africa CEO Daniel Ohonde in a statement.

The bond will be issued in three tranches —the initial Sh2 billion, followed by Sh1.5 billion and another Sh1.5 billion.

Real People is the largest credit-only microfinancier in the country with a loan book of Sh2.5 billion.

Its parent firm, Real People Investment Holdings, listed on the Johannesburg Stock Exchange (JSE), last year indicated plans to issue the bond.

NIC Capital is the lead arranger for the bond while Coulson Harney Advocates is the legal advisor.