Kenya Mortgage Refinance Company PLC (KMRC) on Monday listed its Ksh 8.1 billion Corporate Bond on the Nairobi Securities Exchange (NSE).
“The response to our inaugural bond issue demonstrates the market’s confidence in the KMRC’s model and strategy and is a statement to the importance of the Company’s mandate to increase homeownership and transform the country’s housing sector,” KMRC’s CEO Johnstone Oltetia said during the bell ringing.
The Company’s first tranche of the Medium-Term Note program was oversubscribed by more than 400 per cent, worth Ksh 8.114 billion against a target of Ksh 1.4 billion.
The proceeds raised will enable KMRC to blend its inventory of concessional funds and scale up operations, as it seeks to continue to refinance home loans and make them affordable and within reach for more Kenyans.
Redemptions on the paper will commence in March 2023.
The Capital Markets Authority Chief Executive Officer Wyckliffe Shamiah said the overwhelming market response to the Kenya Mortgage Refinance Company Medium-Term Note Programme signals growing investor confidence.
“This is a major milestone which positions the capital markets as a source of funding to support productive economic activities such as the delivery of affordable housing, which is one of the pillars of the National Big Four Agenda. It affirms the growing issuer and investor confidence in the bond market.”
KMRC now adds to the list of four (Acorn, Centum, Family Bank, EABL) corporate bond issues that have been rolled out within the last two years.
We are therefore delighted that KMRC is listing their corporate bond today. On behalf of the NSE management and staff, we commend KMRC on your successful issue and look forward to deepening our relationship with yourselves @geoffrey_odundo
— NSE PLC (@NSE_PLC) March 14, 2022
June 2021, CBK reviewed the amount of capital that is required to be held by banks for residential mortgages from a risk rate of 50% to 35% in accordance with intl best practices. It allows for release of capital that would lead to the financing of this gap. pic.twitter.com/6Bo1ETN7xl
— NSE PLC (@NSE_PLC) March 14, 2022
KRMC serves as a secure source of funding at attractive rates to iincrease the number of qualified borrowers and results in the expansion of the primary mortgage market and home ownership in Kenya. @KeTreasury pic.twitter.com/sPfWg1sABm
— NSE PLC (@NSE_PLC) March 14, 2022
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