Treasury receives KSh248Mn from the Ksh1 billion M-Akiba bond

By David Indeje / September 12, 2017

Kenya’s National Treasury  raised Ksh 248 million  from the second tranche of the M-akiba bond issued in June from from 303,534 investors.

The bond, whose closure period was extended by two months in July after receiving 35,672 total registrations with Ksh 140, 797, 083 being raised below the KSh1 billion target.

Nairobi Securities Exchange (NSE) chief executive, Geoffrey Odundo, said the launch of the bond will transform the savings and investment culture in the country, offering financial inclusion to all from the palm of their hands.

“As we close the offer today, we thank Kenyans for their participation and look forward to bringing more M-Akiba Bond issues to the public and foster economic growth,” he said.

“Indeed M-Akiba bond and mobile money in Kenya redefines the meaning of ‘financial inclusion’ and reduces significantly, the proportion of the ‘unbanked’,”he said.

Central Depository and Settlement Corporation, chief executive, Rose Mambo said the bond affirms Kenya’s position as a leader in the use of mobile technology.

“We are happy with the interest MAkiba has attracted and look forward to many other firsts. We are keen to utilise the bond,” she said.

The  bond is a three-year infrastructure development bond, with a coupon rate of 10 per cent per year tax-free, paid biannually until the bond matures.

Money raised from issuance of M-Akiba will be dedicated to new and ongoing infrastructural
development projects.

The first phase of the bond was closed after selling Kshs 150.0 mn, having met its target on 5th April, 5-days ahead of the intended closure date on 10th April. 102,632 potential investors registered on the platform of which 5,692 investors subscribed for the issue, with an average investment of Kshs 26,359 per investor.

About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_Indeje David can be reached on: (020) 528 0222 / Email: [email protected]

View other posts by David Indeje