UAP Holdings corporate bond oversubscribed by 59pc
UAP Group Managing Director Dominic Kiarie during an interview at his office on February 14, 2014. UAP said in a statement Monday that it had received offers of Sh3.192 billion for the five-year bond against the target of Sh2 billion. PHOTO | JEFF ANGOTE | FILE
What you need to know:
- UAP said in a statement Monday that it had received offers of Sh3.192 billion for the five-year bond against the target of Sh2 billion.
- UAP had earlier disclosed plans to use part of the bond (Sh300 million) to acquire an insurance firm in the regional market.
The UAP Holdings corporate bond has been oversubscribed by 59.6 per cent.
The funds raised will finance the company’s expansion programme.
UAP said in a statement Monday that it had received offers of Sh3.192 billion for the five-year bond against the target of Sh2 billion.
Group managing director Dominic Kiarie said the success of the bond, demonstrated the strong faith investors had in the group and the positive outlook of the markets where UAP operated.
“The proceeds from the issue of notes will be applied by UAP for its general corporate purposes including capital management, funding long-term assets and investments in subsidiaries,” Mr Kiarie said.
He said more than 60 per cent of the bond proceeds would be invested in high growth regional markets where the company has a presence to further diversify its revenues.
UAP had earlier disclosed plans to use part of the bond (Sh300 million) to acquire an insurance firm in the regional market.
“There are plans to venture into one more market this year, preferably through acquisition,” a source privy to UAP’s expansion details said.
The notes were issued on July 28, 2014, and are scheduled to be listed on the Nairobi Securities Exchange on August 27, this year.
