Bond Moment: May 2015

Chase Bank Kenya launched a Kshs 10 billion  ($108 million) bond today. It matures in 7 years, will pay about 13% return with a minimum investment is Kshs 100,000 ($1,080). The first tranche of the multi-currency bond will be for Kshs 3 billion with a green shoe option of another Kshs 2 billion.

Centum Investments have launched a Kshs 6 billion (~$65 million) bond that pays about 13% over 5 years. They intend to use the money raised for projects in finance, energy, and real estate. It runs from May 18 to June 5. More on the Centum projects which include the Akira geothermal plant in Ol Karia, a coal plant in Lamu, and the Two Rivers Mall project in Nairobi.

Rwanda is planning an inaugural 10-year, $14.5 million, bond to finance energy and road projects.

Tranccentury shares are taking a hit as the company moves to raise additional cash through a rights issue to repay an $80 million convertible Eurobond that was issued in 2011.

Cash-strapped Kenya Airways is looking at options to sort out it liquidity problems including a long-term bond or a fresh capital injection.

Transnational Bank lost Kshs 200 million after it asked Tsavo Securities to facilitate a bond sale buy-back transaction on its behalf in 2012.

Listed real estate firm Home Afrika was unsuccessful in its attempt to raise $10 million through a 13.5% bond.

Don’t want to buy bonds directly? There are bond funds at British American, ICEA Lion, Old Mutual Investments and at Dyer & Blair.
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