Britam Sells 6 Billion Shillings of Bonds as Demand Beats SupplyCharles Wachira
British-American Investments Co., Kenya’s biggest publicly traded money manager, raised all the cash it sought in a single bond sale, canceling the need for a planned second issuance.
The Nairobi-based company sold 6 billion shillings ($68 million) of debt with demand amounting to 7.4 billion shillings, Britam said in an e-mailed statement today. It planned to sell 3 billion shillings in the offering, which would’ve been followed by another sale to raise the balance, it said.
“We’re not going back to the market,” Gladys Karuri, the company’s finance and strategy director, said by phone. The five-year notes will pay interest of 13 percent, payable every six months, she said.
Britam will use the funds to further regional and local expansion, accelerate property developments and to increase investments in private equity as it seeks to boost its presence into 47 countries, the company said. The stock rose 1.2 percent to 21.25 shillings on the Nairobi Stock Exchange today, extending gains this year to 40 percent, compared with a 15 percent advance in the FTSE NSE Kenya 25 index.