Kenya’s National Treasury raised KSh197 million from its mobile-based infrastructure bond, M-Akiba which had a 79% subscription rate.
The overall target was set at KSh250 million.
This tranche which was on offer from February 25 to March 10, 2019, attracted over 82,000 new registrations, pushing the total number of registered M-Akiba accounts to 459,586 CDS accounts.
The Capital Markets Authority has consequently approved its listing of the M-Akiba Retail Infrastructure Bond on the Nairobi Securities Exchange (NSE).
The bond will enjoy a coupon rate of 10% payable every six months will be redeemed on September 7, 2020, and will have three interest payments dates; September 9, 2019, March 9, 2020, and September 7, 2020.
Nairobi Securities Exchange Chief Executive, Geoffrey Odundo said the subscription rate is a clear indication of Kenyans investment appetite and an affirmation of the need for more innovative financial products in our market.
“The NSE will offer a world-class trading facility for the bond as it commences trading on the secondary market, enabling any investor who missed an opportunity to purchase the M-Akiba bond to do so and enjoy the myriad of benefits the bond offers,” added Odundo.
Since inception, the bond has attracted over 450,000 new investors onto the bond platform underscoring the band’s potential to revolutionize access to capital market products.
M-Akiba investors have received a total of KSh47.2 million from March 2017, in interest with the CDSC paying an additional KSh12.3 on March 11 bringing the total amount paid in interest to KSh59.67 million.