The corporate bond market will shrink 27 percent in October as Sh12.7 billion is set to mature and four issuers leave the market.
CIC Insurance, Housing Finance, KenGen and Consolidated Bank are expected to repay back their debt by end of the month.
Kenya’s corporate bond market currently is a Sh47.2 billion portfolio issued by 10 firms compared to August 2014 when there were 28 listings with a value of Sh71.28 billion. There has been no listing since April 2017’s Sh6 billion EABL bond.
KenGen announced it will pay up the last tranche of its infrastructure bond in October 31, retiring Sh3.1 billion from the corporate bond books.
“Following the last redemption payment the PIB will be delisted from the corporate bond list at the NSE,” said KenGen in a notice.
Those who are repaying their bonds are not keen to continue using the market to fund their businesses.
CIC Insurance Group announced it will be redeeming the Sh5 billion note in full upon their maturity on October 2, 2019.
The listed firm said it will give priority to the sale of its 712 acres of freehold land before considering other options to replenish its balance sheet
Housing Finance announced that it (7) year Medium Term Note will be paid on Monday 14 October 2019.