NCBA Bank Kenya PLC says it intends to redeem its KSh7 billion medium-term note on 14th September 2020.
Initially, it was to be redeemed on December 14, 2020, but with the early redemption, the lender is expected to save Ksh 222 million.
The lender in its annual report for 2019, disclosed that the Ksh 7 billion was among its two sets of long-term subordinated debts facilities obtained to enhance the Bank’s capital base.
“The Notes will be redeemed at an amount equal to the nominal value of the Notes, together with the accused but unpaid interest from the preceding Interest Payment Date up to and including the Early Redemption Date (the Early Redemption Amount).
The Notes will be delisted from the Fixed Income Securities market Segment of the Nairobi Securities Exchange.
According to the lender, the amount redeemed will be disbursed to holders registered as owners of the notes in the Central Depositories and Settlement Corporation register as at 12th August 2020 (Record Date).
From its 2019 Annual Report, the KShs 7.0 billion raised from the Medium-Term Note issued in December 2014 at an interest rate of 12.75 percent with a tenure of 6 years.
The outstanding principal balance at 31 December 2019 was Shs 7 billion (2018: KSh7 billion).
The other Medium-Term Note is US$ 20 million unsecured facility raised from IFC in December 2014, with a tenure of 7 years. Its outstanding principal balance at 31 December 2019 was US$ 20 million (2018: US$ 20 million). It bears interest at rates referenced to the six months Libor.
NCBA Bank Kenya PLC has four long-term senior loans as below:
- US$ 35 million unsecured facility raised from IFC in December 2014, with a tenure of 7 years. Outstanding principal balance at 31 December 2019 was US$ 16 million (2018: US$ 22 million);
- US$ 54 million unsecured facility raised from EIB in December 2016, with a tenure of 7 years. Outstanding principal balance as at 31 December 2019 was US$ 36 million (2018: US$ 42 million);
- The Bank entered into arrangement with Agence Francaise de Developpement (AFD), a French public entity for a revolving fund EUR 10 million with partial drawdown option.
- In the year, the bank drew US$ 66 million unsecured facility from the African Development Bank. The facility is payable over a period of 7 years, including a two (2) year moratorium. These facilities bear interest at rates referenced to the six months Libor.