June 25, 2010

Kenya

Kenya’s 25-bond bond is 3 times oversubscribed

Kenya’s Government has successfully issued a 25-year bond, which sets a marker for the capital market, points the way for other African markets to follow, and is a major boost for investor confidence. It also helps the Government access cheaper and longer-dated debt, according to a report in The Nation newspaper (www.nation.co.ke). The bond, priced at an indicative coupon of 11.25% and redeemable in 2035, raised KSh7.5 billion (US$91.7 million) at good interest rates as the average rate was 10.46%.

Exchange news

Uganda moves towards immobilization

The Uganda Securities Exchange is aiming to finish immobilizing the shares listed for trading on 28 June, according to a statement issued by the bourse, as reported in local media. Companies whose shares are being moved into electronic form include Bank of Baroda, East African Breweries, Equity Bank, Jubilee Holdings, Kenya Airways, National Insurance Corporation and British American Tobacco.