Acorn Holdings sees oversubscription of final tranche of its Green Bond

KENYA – Property developer Acorn Holdings Limited has closed the final tranche of its Medium-Term Green Note Programme under which the first Green Bond was launched. In a statement, the company says the bond has raised KSh2.096 billion (US$19.4 million) against a target of KSh1.438 billion (US$13.3 million) representing a subscription rate of 146 percent. The green bond was launched in October 2019 for KSh5 billion (US$46.2 million), becoming the first of its kind in Kenya. In the process, the first tranche of the issue raised KSh4.262 billion (US$39.4 million)…

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Family Bank raises US$41m in fresh corporate bond

KENYA – Financial institution Family Bank has raised US$41 million in fresh corporate bond, marking a subscription of 147.3 percent against a US$27.8 million target with a greenshoe option of US$9.3 million in its first tranche of the corporate bond offer via private placement. A greenshoe option is an over-allotment option which gives an entity offering shares to the public to sell to investors more shares than initially planned by the issuer when the demand proves higher than expected. In this case, it allows the lender to raise more money…

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Kenya’s Family Bank to issue US$37m corporate bond to drive its growth agenda

KENYA – Financial institution Family Bank is returning to the corporate bond market as it seeks to raise US$37 million to fund its growth. The Kenyan lender says it has received approval from the Capital Markets Authority to raise the funds by way of a public offer. The bank plans to raise another US$37 million within the next five years in multiple transactions, raising the potential total debt issuance to US$74.2 million. “We are positioning the bank for the second phase of growth as per our 2020-2024 strategy anchored on…

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Paint manufacturer Crown Paints gets greenlight to issue additional shares to fund expansion

KENYA – Capital markets regulator Capital Markets Authority of Kenya (CMA), has given the nod to Crown Paints Kenya Plc to raise US$6.7 million from shareholders via purchase of additional shares. The regulator, in a statement, said it had approved the firm’s bid to issue and list 71,181,000 new ordinary shares on the Nairobi Security Exchange (NSE). “The rights will be issued on the basis of one new ordinary share for every one existing share,” noted CMA. The additional funds raised will boost the company’s financial flexibility to navigate through…

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I&M Holdings completes acquisition of Ugandan lender Orient Bank

UGANDA – I&M Holdings Plc. has completed the acquisition of 90 percent shareholding in Uganda’s privately-owned lender Orient Bank Ltd (OBL) as part of its regional expansion plan. In a press statement, I&M said the acquisition was completed on April 30, 2021 after the transaction received the necessary approvals from the Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the Common Market for Eastern and Southern Africa (COMESA). The agreement for the deal priced at US$26.93 million was made in July 2020. “I&M Group aspires to…

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Carbacid takeover of BOC Kenya hits legal hurdles

KENYA – BOC Kenya’s proposed takeover by Carbacid in collaboration with Aksaya Investments has been put on hold pending the hearing of an appeal at the Capital Markets Tribunal of Kenya. In a cautionary announcement in the Kenyan local dailies, the Nairobi Securities Exchange listed gas manufacturer BOC Kenya Plc has informed its shareholders and the investing public that an appeal was filed by a shareholder at the Capital Markets Tribunal(CMT) on March 2nd, 2021, in respect of the takeover offer by Carbacid Investments Plc and Aksaya Investments LLP. Section 35A (17)…

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South Africa’s Liberty Holdings to up its stake in its Kenya subsidiary

KNYA – Financial services and property holding company Liberty Holdings of South Africa plans to increase its ownership in Liberty Kenya from 57% to 73%, furthering its dominant position in the firm. The insurer, which is also the largest shareholder in Liberty Kenya, plans to acquire additional 49.5 million ordinary shares of the listed insurer from KFAMF Sellers and 34.7 million ordinary shares from Coronation Sellers. Liberty Holdings owns 309.33 million ordinary shares in Liberty Kenya, equivalent to 57.7% of the company. By purchasing an additional 84.24 million shares, the…

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Nation Media Group announces shares buyback plan

KENYA – East and Central Africa’s largest media company Nation Media Group (NMG), has announced a proposal to buy back up to 10% of its 18,854,229 ordinary shares which is in line with Kenya’s capital markets regulations that require a company to inform investors about a plan to buy back shares. A share buyback is a unique opportunity for a company to buy its own shares from the stock market. Share buybacks which are relatively new in Kenya, buybacks are used by companies for diverse reasons such as to boost…

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Capital markets regulator CMA grants BOC more time to assess takeover bid by Carbacid

KENYA – BOC Kenya, manufacturer of industrial, medical, and special gases has been granted an extension period by the Capital Markets Authority of Kenya to issue their shareholders with the Takeover offer Document and the Offeree Circular by Friday 5th February 2021, an extension from the proposed Monday 25th January 2021. The firm through a press statement said the period will allow more time to the independent advisor who was appointed by the company to provide fairness of opinion to the shareholders. “The additional days will also afford the board adequate…

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Kenya’s capital markets regulator CMA approves Acorn hostel reits

KENYA – Market regulator Capital Markets Authority of Kenya (CMA), has approved the issuance of a development and investment real estate investment trust (Reit) by student hostel developer Acorn, setting the stage for accelerated development in the capital city Nairobi. The Reit approval follows the issuance of a Reit Manager licence to Acorn last month, with the firm also having issued the first country’s first green bond in October 2019. Acorn had disclosed in a roadshow presentation to potential investors in September that the D-Reit is expected to be worth…

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