Kenyan leading real estate firm, Centum has managed to raise KSh3 billion from the recently issued bond, against the target of KSh4 billion. The bond attracted diverse investors including, banks, asset management firms, pension funds, and individual investors. It is a three year bond with the maturity date set on December 16, 2023. Funds raised will go toward financing ongoing projects in the development of affordable housing in Kenya.
Sources say that investors will earn a return of 12.5% for the plain vanilla bond and 12-14% for the Equity Linked bond. The bond will be listed on the Nairobi Securities exchange after it receives approval from the relevant regulators.
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Samuel Kariuki the Managing Director of Centum Real Estate is optimistic about the bond saying that they are pleased with the outcome, given that the zero-coupon bond is the first of its kind issued by a corporate in Kenya. The bond raised 75% of its targeted amount despite the prevailing difficult economic environment and the bearish corporate bond market.
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“Investors are now regaining confidence in the Corporate Bond market after the negative experience in 2019,” said Kabaki Wamwea, the CEO of Private Wealth Capital, the Lead Arrangers of the Centum Real Estate Bond. He expects vibrant trading of the bond on the secondary market due to its attractive structure.
Centum Real Estate has 1,482 residential units under construction and out of those, 1,202 units are already presold. The firm’s managing director Samuel Kariuki noted that they have received KSh 1 billion in customer deposits since April this year and sealed KSh 3 billion in land sales.
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