Kenya

Capital raising

British American Investment launches Kenya IPO

British American Investment Company (Kenya) Ltd launched its initial public offer (IPO) this week. It aims to raise KES 5.58 billion (US$62.2 million) for expansion. The offer is open until 5 August, and it to list its shares on the Nairobi Stock Exchange.

Capital raising

Kenya’s Transcentury private equity firm to list on Nairobi SE

Kenyan private equity firm TransCentury is to list through introduction at the Nairobi Stock Exchange on 14 July at a price of KES50 (USD0.58) a share. The firm began as an investment club and is valued at KES13.35 billion ($148.7 million).

Kenya

Indian telco to leave E African market – cites slow Govt approvals

Indian steel-to-outsourcing conglomerate Essar has cancelled deals to buy telecoms operators in Uganda and Congo and is to sell its Kenyan operations, under the Yu brand.

Exchange news

Wind of change blows world markets, African stock exchanges unruffled

I have the honour to be published on the opinions section of the Royal African Society website and the article can be seen along with their excellent blogs I also reprint the article, which is meant to spark debate, and I welcome your comments – is it time for change and what is the way forward?

Exchange news

Nairobi Stock Exchange and FTSE work on new market indices

The Nairobi Stock Exchange and FTSE International are to create new FTSE/NSE share and bond indices. These could be marketed to international investors.

Funds

Mobius blogs on why he likes Africa

From the blog of Mark Mobius of Templeton Investments: “While Africa does have challenges, I am encouraged by another side of Africa that is gradually emerging with the development of capital markets, consumerism and technology.”

Egypt

Giant growth foreseen for African stock exchanges over 10 years

African exchanges could grow dramatically in both market capitalization and turnover in the coming decade, following the explosive trends already charted by the Indian and Chinese markets. This was the view of Sunil Benimadhu, President of the African Stock Exchanges Association (ASEA), speaking at an African investment conference organized by stockbroker Securities Africa in London on 14 March.

Exchange news

Nairobi SE broker backoffice system to support online share trading

The Nairobi Stock Exchange has bought a new broker back office (BBO) system which it hopes will boost liquidity and attract listings, including offering online trading and is set to go live this March. The exchange and the vendor, Chella Software of India, are training personnel at stockbrokers, investment banks and others. The system cost KSh75 million (US$880,000).

Capital raising

IFC invests $10 mn in East Africa’s Catalyst I private equity fund

IFC on 8 March announced it was investing $10 million in equity in Catalyst Fund I LLC. The fund aims to stimulate employment and accelerate economic growth across East Africa by improving access to equity financing for emerging and mid-size companies.

Kenya

Automated trading systems bring Nairobi SE to desktops, Internet and mobiles

Kenya’s stockbrokers and investment banks are moving fast to automated systems. They say that the future of stock trading is going to be via the Internet and mobile phone applications, according to a report in the Business Daily newspaper. Kenyans are fast with technology and moved en masse to leapfrog the rest of the world and adopt new technology for mobile money transfers.

Exchange news

East Africa securities training for thousands

The International Finance Corporation and East Africa’s Securities Industry Training Institute (SITI), based at the Uganda Securities Exchange have signed an agreement to broaden training over the next 10 years. This will be used to licence market participants.

Exchange news

Kenya regulator cuts bond charges, banks still push for bond OTC market

Kenya’s Capital Markets Authority has cut the cost of trading bonds from 0.04% per cent (KSh400 for every KSh1 million transacted) to 0.035% (KSh350 for every KSh1 mn) in order to pass on the lower costs due to automated trading on the Nairobi Stock Exchange. Banks say they still want an Over-The-Counter market to trade bonds alongside the NSE.

Kenya

Safaricom offers $56 million bond

Telecoms giant Safaricom Ltd., a mobile phone company that is the biggest listing by market capitalization on the Nairobi Stock Exchange, is selling KSh 4.49 billion shillings ($56 million) of 5-year bonds from 1 Dec, according a report on Bloomberg.

Kenya

PTA Bank launched $300 million eurobond

PTA Bank, a multilateral financial institution based in Nairobi, successfully launched a US$300 million Eurobond in November. According to a press release from Standard Bank, this was the only corporate Eurobond from sub-Saharan Africa in 2010, the only one since 2007 and the first Eurobond from an east African issuer, either sovereign or corporate.

Exchange news

Nation Media Group in Rwanda cross listing, new market tax incentives

Kenya’s Nation Media Group has cross-listed its shares at the Rwanda Over-The -Counter (ROTC) market on 2 November

Kenya

Nigeria and Zambia joining African rush into bonds

Africa needs to spend $93 billion a year on power, transport and water projects over the next decade to lift growth in the world’s poorest continent. Bloomberg news agency reports that Nigeria appointed Barclays Capital in October as an adviser for a planned $500 million Eurobond to support government spending. Zambia plans to raise $1 billion on the back of a planned sovereign credit rating this year

Exchange news

Kenya’s central depository aims to expand

Kenya’s Central Depository and Settlement Corporation continues to expand outside the borders of Kenya, buoyed from its 2008 triumph with the region’s biggest initial public offer, Safaricom. Recently, Business Daily newspaper reported that CDSC has submitted a bid to offer consultancy services for setting up an electronic share depository for the Zimbabwe stock market and is engaged to handle Rwanda’s BRALIRWA public offer.

Capital raising

$250 million TMT and real estate fund raising capital in East Africa

Kenyan venture capital company East Africa Capital Partners Ltd is to begin raising its second fund next year, with a target size of USD250 million, after its success in fully investing $100 million of the first African Technology, Media and Telecommunications (ATMT) fund. The new fund is to focus on information technology, media and real estate.

Kenya

Kenya moots $124 mln bond to finance universities

Kenya’s Government aims to float a KSh10 billion (USD124 million) university bond early in 2011 to help higher learning institutions raise funds to admit more students. The aim is to open new financing avenues by offering a Government guarantee, and to open places for 25,000 more students, eliminating a 2 year wait for furuterh studies.

Exchange news

Waiting for Nairobi SE demutualization

Stakeholders in the Kenyan capital market are still waiting for changes to the Capital Markets Act to allow demutualization of the Nairobi Stock Exchange. According to a recent report in the Standard, Peter Mwangi, NSE chief executive, said amendments to the CMA Act would come into force on 1 January 2011.