M-Akiba Misses Out on the Ksh. 250 Million Target Once Again

M-Akiba Retail Infrastructure Bond has once again failed to hit its target after raising a total of 197 million shillings against a target of 250 million shillings, reporting a 79 percent subscription rate.

The mobile-based infrastructure bond which was on offer from February 25^th to Mach 10^th 2019 attracted over 82,829 new registrations pushing the total number of registered M-Akiba accounts to 459,586 accounts.

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

“The 79 percent subscription rate is a clear indication of Kenyans investment appetite and an affirmation of the need for more innovative financial products in our market,” said NSE Chief Executive Officer Geoffrey Odundo.

The bond had been structured to attract small investors with investments of as little as 3,000 shillings to help fund infrastructure as well as inculcate saving culture.

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.

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.

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.

Investors who bought the bond will receive interest payments in September 2019, March 2020 and September 2020 when the invested amount will also be redeemed. The Treasury plans next sales in May, July, and August, each targeting Sh250 million.

Listing the bond on the NSE now brings to three the number of mobile traded bonds on the bourse.