Kenya’s Capital Markets Authority has granted approval to Centum Real estate to issue secured zero-coupon and secured zero-coupon equity-linked Medium Notes of Ksh 4 billion with a greenshoe option of Ksh 2 billion.
According to CMA, the restricted issue targets sophisticated investors who are sufficiently versed with the risks associated with the notes, in line with Section 30(b) of the Capital Markets Act.
The notes have a tenor of three years.
Proceeds from the issue will be used to fund real estate development by Centum Re, a subsidiary of Centum Investment Company Limited.
The senior secured zero-coupon notes will attract an indicative interest rate of 12.5 percent whereas the senior secured zero-coupon equity-linked notes will generate an indicative interest rate of 12 percent,” said CMA.
The subsidiary has approved a project pipeline of 4,426 residential units, of which the first phase of 2,000 units is either under construction or pre-selling.
Centum Real Estate Limited is the holding company for the Group’s Vipingo Development Limited in the Kenyan Coast, Pearl Marina Estates Limited in Uganda, Uhuru Heights Limited in Nairobi, and Centum Development Kenya Limited.
