14 November 2012

Kenya: Housing Finance Bond to Be Listed Today

THE just ended Housing Finance bond will start trading at the Nairobi Securities Exchange today. The mortgage lender raised Sh5.2 billion against a target of Sh2.9 billion representing a 76 per cent oversubscription in the 2nd tranche of its recent bond issue.

This was the second and final tranche of a Sh10 billion medium term note approved by the Capital Markets Authority in 2010, which was initially planned for issue in three tranches in 2010, 2012 and 2013.

The bond issue attracted both local individual and institutional investors. The offer for the second tranche of Housing Finance bond went on offer on 1st October at a fixed rate of 13 per cent. The anticipated listing date was initially set for october 30 2012.

Proceeds from the bond issue will be used for mortgage financing, onward lending to property developers and in increasing Housing Finance participation in the supply of affordable houses targeted mainly at the lower and middle segments of the market. Central Bank governor Njuguna Ndung'u is expected as the main guest at today's event at the NSE.

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