Jamii Bora bond investors to get Sh400 million shares

Corporate News

 

Jamii Bora Bank chief executive Samuel Kimani (left) with Postbank acting managing director Anne Karanja during the signing of an agency banking agreement on July 22, 2014. Photo/Diana Ngila 

By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com

In Summary

• Jamii Bora Bank has planned a Sh1 billion rights issue in September to finance its expansion plans.
• Besides part-conversion of the bond into equity, the bank has plans to sell a Sh200 million stake to a strategic investor, while Sh400 million will be raised in cash.
• The additional funds collected from the cash call, the bond conversion and strategic investor will increase Jamii Bora’s core capital to Sh2.4 billion, allowing it to grow lending to small and mid-sized (SME) enterprises.

Investors holding up to Sh400 million worth of Jamii Bora Bank’s corporate bond have committed to convert their interest into shares, helping to raise 40 per cent of the lender’s targeted amount in the upcoming rights issue.

Jamii Bora courts Kenya Power clients

Corporate News

Jamii Bora Bank chief executive Samuel Kimani (left) with Postbank acting managing director Anne Karanja during the signing of an agency banking agreement on July 22, 2014. Photo/Diana Ngila 

 

By MUGAMBI MUTEGI

Jamii Bora Bank is seeking to grow its loan book by lending cash to Kenya Power customers for connection to the national electricity grid.

Nakumatt cleared to take over Dar Shoprite stores

Corporate News

A Nakumatt outlet. The retail chain will take over three Shoprite stores in Tanzania. Photo/FILE 

By SIMON CIURI

In Summary

• Fair Competition Commission of Tanzania confirmed that it had given a green light for the transaction that will see Nakumatt stores in Tanzania increase to four.
• The acquisition has been valued at about Sh4 billion.
• Shoprite exited Tanzania after about 12 years in the country after being accused of importing the bulk of its products from its mother company in South Africa.

The Tanzanian competition watchdog has cleared Nakumatt’s bid to take over three stores owned by South African retailer Shoprite in Dar es Salaam and Arusha, moving the buyout closer to conclusion.

Corporate News

Nakumatt eyes first Kenyan supermarket entry into Juba and Burundi

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A Nakumatt outlet in Kigali, Rwanda. The Kenyan retail chain is targeting entry into South Sudan and Burundi. NATION PHOTO|CYRIL NDEGEYA 

By SIMON CIURI

In Summary

• The expansion into Juba and Bujumbura will cost an estimated Sh1.5 billion.
• Nakumatt is seeking to export the shopping mall culture to the largely informal retail markets of Burundi and South Sudan.

Nakumatt Supermarket is targeting entry into South Sudan and Burundi, making it potentially Kenya’s first big retail chain to open shop in the two countries.

Lower costs raise Equity Bank’s profit 21.4pc

Corporate News

An Equity Bank agency in Nyeri. Agency banking has lifted the bank's half-year profit. PHOTO|FILE 

By DAVID HERBLING

In Summary

• After-tax profit grew 21.4 per cent to Sh7.6 billion in the period to June 2014, compared to Sh6.3 billion in a similar period a year earlier.
• Mr Mwangi said that Equity Bank has turned to diversifying revenue streams to cut over-reliance on funded income and offset a depressed interest income yield of 300 basis points following a cut in lending rates.

Equity Bank’s net profit for the first half of the year jumped by a fifth helped by increased earnings from fees, commissions and low operational costs.

Centum cuts staff bonus pay by 7.9 pc

Corporate News

Centum CEO James Mworia explains the Two Rivers housing project at the company’s investor briefing on June 10, 2014. Photo/FILE 

By VICTOR JUMA

In Summary

• The investment firm says it pays bonuses if shareholder funds or the net asset value rises by more than 15 per cent in a financial year.
• Centum’s seven executives earned a bonus of Sh96.9 million last year, down eight per cent from Sh105.3 million in 2012.

Centum Investment cut staff bonuses by nearly eight per cent last year but the payout still exceeded the overall employee salaries for the year, the company’s annual report has showed.

Centum paid Sh1 billion for stake in Genesis

Money Markets

Centum CEO James Mworia explains the Two Rivers housing project at the company’s investor briefing on June 10, 2014. Photo/FILE 

By GEORGE NGIGI

In Summary

• Centum Investments acquired a 73.3 per cent holding in the fund management company in December last year.

Centum Investments has disclosed it paid Sh1 billion for a majority stake in fund manager Genesis Kenya.