12 December 2012

Kenya: CMA Approves Centum Bond Listing At NSE

The Capital Markets Authority has approved to Centum Investment's plan to list a Sh194.4 million bond issued through private placement in September 2012 by way of introduction.

The fixed rate short term bond was issued through the fixed income securities investment market segment of the Nairobi Securities Exchange.

The investment firm has been allowed to list list an additional Sh805.6 million. The capital is expected to boost Centum's investment plans as it intends to venture into real estate business.

The company had issued a profits warning early last month, citing possible revenue hit by court by action involving four bottling companies it had invested Sh5 billion in.

Its shares in the four Coca-Cola bottling companies in Kenya represented just over a quarter of its total assets, contributing 20 per cent of its profit and 2 per cent of the cash flow at the end of its last financial year in March.

Kenya Revenue Authority was claiming Sh5 billion in excise duty from the four firms. Firms are required to issue a warning if earnings are likely to fall by more than a quarter in a full financial year.

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