By Kepha Muiruri For Citizen Digital
The issue which closes on February 18 is priced at 12.5 per cent per annum, payable semi-annually.
The seven-year timed paper is expected to prop funding to the State-backed and sole mortgage refinancing
Proceeds from the MTN program are expected to diversify KMRC’s long-term funding mix which is presently skewed towards concessional loans from institutions such as the World Bank and the African Development Bank (AfDB).
KMRC's primary role is providing long term funding to primary lenders for on-ward mortgage issuance to their customers.
The entity was created in 2018 as a public-partnership deal whose end goal is lifting the number of mortgages and growing homeownership via the government’s affordable housing program.
The MTN program was approved by the Capital Markets Authority (CMA) earlier in January.
The results of the bond and allotment will occur on February 22 before the start of the paper’s secondary trading at the Nairobi Securities Exchange (NSE) on March 14.
Redemptions on the paper are set to start in March next year.
KMRC has an AA-credit rating from the South African based Global Credit Ratings (GCR).
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