M-Akiba bond hits 79pc subscription rate raising Sh197m in two weeks

MONEY SHILLINGS - M-Akiba bond hits 79pc subscription rate raising Sh197m in two weeks
M-Akiba investors have received a total of Sh47.2 million in interest with the CDSC paying an additional Sh12.3 on March 11 bringing the total amount paid in interest to Sh59.67 million./FILE

NAIROBI, Kenya, Mar 18 – The mobile-based infrastructure bond, M-Akiba, has closed with a 79 percent subscription rate having raised Sh197 million against a target of Sh250 million.

This tranche which was on offer from February 25 to March 10, 2019 attracted over 82,000 new registrations, pushing the total number of registered M-Akiba accounts to 459,586 CDS accounts.

The Capital Markets Authority has consequently approved the listing of the M-Akiba Retail Infrastructure Bond on the Nairobi Securities Exchange (NSE).

The bond which enjoys a coupon rate of 10 percent payable every six months will be redeemed on September 7, 2020 and will have three interest payments dates; September 9, 2019, March 9, 2020 and September 7, 2020.

NSE Chief Executive, Geoffrey Odundo said the subscription rate is a clear indication of Kenyans investment appetite and an affirmation of the need for more innovative financial products in our market.

“The NSE will offer a world class trading facility for the bond as it commences trading on the secondary market, enabling any investor who missed an opportunity to purchase the M-Akiba bond to do so and enjoy the myriad of benefits the bond offers,” added Odundo.

M-Akiba seeks to deepen and enhance financial inclusion through leveraging on increased mobile phone penetration to democratize access to formal financial systems for savings and investments.

More Kenyans are now able to participate in Government bonds by investing a minimum Sh3,000.00 which is considerably lower in comparison to the minimum Sh50,000.00 required to invest in other Treasury bills and bonds.

Since inception, the bond has attracted over 450,000 new investors onto the bond platform underscoring the bond’s potential to revolutionize access to capital market products.

M-Akiba investors have received a total of Sh47.2 million from March 2017, in interest with the CDSC paying an additional Sh12.3 on March 11 bringing the total amount paid in interest to Sh59.67 million.

Author: worldwidenewscast

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