“The massive participation in the corporate bond is a validation of the confidence the market has in the group,” said Benson Wairegi, Britam’s managing director in a statement by the diversified financial services firm.
Sh7.4 billion ($84.2 million) was raised, beating the expected Sh3 billion by more than 100 percent, funds Wairegi noted would propel the firm to the next growth level, which is in tandem with Britam’s strategic plan.
The firm can now take up Sh6 billion ($68.3 million) based on an over-allotment provision of Sh3 billion as approved by the Capital Markets Authority.
Leading fund managers contributed 50.9 percent to the transaction, the highest participation recorded. Insurance companies and banks together contributed 41 percent of the total raised. Retail investors contributed 8.1 percent, according to Paul Orem, chief executive of Dyer and Blair, the lead adviser of the transaction.
The funds will be used by Britam to enhance its local and regional expansion plans. It will also be used to accelerate “property development and increase investment in private equity.”
Britam last month announced its intention to acquire a 24.6 percent held by Kenya’s Equity Bank in Housing Finance, a mortgage firm in a deal said to be worth Sh2 billion ($22.8 million).
No comments:
Post a Comment