Centum Investments Company has redeemed its 6.6 billion shillings corporate bond according to a statement released on Monday.
The move is set to help the firm cut its financial costs and increase cash returns to shareholders, with dividends set to rise.
The latest debt settlement by Centum follows the retirement of a 7.8 dollar-denominated loans in September 2019.
In the year ended March 2019, Centum paid a dividend of 1.20 shillings per share, a total of 798.5 million shillings. This was similar to the total dividends paid in 2018.
Centum is currently undervalued at the Nairobi Securities Exchange (NSE) and it plans to increase dividends and buy back shares from shareholders as a comeback strategy.
Currently, a share at Centum is going for 24 shillings, lower than its asset value per share of 75 shillings. The low share price has seen major shareholders such as Chris Kirubi buying more than 100 million more shares.
Covid-19 has hit hard blue chip companies at the NSE. Most witnessed panic selling of shares from shareholders who exited the market to look for safe havens.
Some investors rushed to shield their wealth by investing in gold after it was evident that the global economy was headed to a recession. Sadly, gold prices have started dropping too.
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