Housing Finance introduces new Kenyan bond

Sep 20, 2010

Kenya's Housing Finance has launched a new seven-year bond valued at five billion Kenyan shillings (€47.6 million).

The company, which provides mortgages to property developers and families in the country, will be accepting bids for the bond until October 1st, the Daily Nation reports. It intends to use the money raised to expand its operations in the Kenyan finance sector, with Managing Director Frank Ireri quoted by the newspaper as saying: "Housing Finance is looking at growing its market share from the current 35 per cent to 50 per cent."

The bond is divided into fixed-rate notes - which come with a coupon rate of 8.5 per cent per annum - and floating rate notes, priced at three per cent above the 182-day Treasury bill. Housing Finance intends to issue bonds worth a total of ten billion Kenyan shillings, with the remaining two tranches coming in denominations of three billion and two billion Kenyan shillings.

It was granted approval to do so by the Capital Markets Authority late last month.