UAP’s Sh2bn bond debuts at the bourse
UAP managing director Dominic Kiarie during the bell-ringing ceremony at the Nairobi Securities Exchange on August 29, 2014. PHOTO | COURTESY |
What you need to know:
- The bond was launched in early July targeting institutional and retail high net-worth investors.
- It received offers of Sh3.2 billion — a 59.6 per cent oversubscription.
Financial services firm UAP Sh2 billion bond began trading on the Fixed Income Securities Market at the bourse on Friday.
The bond was launched in early July targeting institutional and retail high net-worth investors.
It received offers of Sh3.2 billion — a 59.6 per cent oversubscription.
UAP will use the funds to diversify and expand into the region, according to managing director Dominic Kiarie.
Institutional investors received 89.4 per cent of the issue, while retail investors received the remaining 10.6 per cent balance of the Note.
“The ability of UAP to successfully tap into the debt capital markets is an attestation of the increased maturity of Kenya’s financial markets. It is a demonstration of the increasing acceptance of Corporate Bonds as an alternative source of funding for Kenyan companies,” CFC Stanbic Bank executive head, the capital market and advisory for East Africa, Mr Naval Sood, said.
Group chairman Joe Wanjui said the success of the bond is an indication of local investor appreciation of UAP’s long-term value.
