Bro bond that propels us to thrive
The government has raised Sh263.6 million against a target of Sh0.5 billion in the latest M-Akiba retail infrastructure bond issue.
It is the highest amount raised during the Primary Market Offer through the retail bond since it was launched in 2017. The amount brings the total amount raised to date crosses the Sh1 billion to stand at Sh1.05 billion.
This was the third time, the bond sale was being reopened by the National Treasury to raise funds for infrastructure. M-Akiba is a government product that seeks to enhance financial inclusion amongst Kenyan citizens and the proceeds applied towards government men infrastructure projects.
Central Depository and Settlement Corporation (CDSC), Chief Executive Rose Mambo said the agency will continue to facilitate the settlement of M-Akiba transactions.
She said CDSC will also continue to manage coupon payments and redemption of the bond at maturity. The mobile-phone-based bond trades on Nairobi Securities Exchange.
Mambo said the corporation paid out a total Sh31.39 million in interest to M-Akiba investors – who had invested a year ago, which in essence brings total amount paid out in interest to Sh98.56 million since the first Issuance.
“ The third tranche was on offer from August 19 and closed on September 6, attracting additional 51,461 new accounts bringing the total M-Akiba accounts to 565,725,” she said
NSE Chief Executive, Geoffrey Odundo said M-Akiba has registered an impressive growth as demonstrated by the Sh1 billion so far received.
“We continue to honour our promise to our customers by offering them an efficient investment platform as illustrated by the payouts made to customers on September 9. We urge the public to invest in the secondary market by dialing *889# and get to benefit from this platform,” he added.
Odundo said the third tranche was a combination of two (July and September) issuance of Sh250 million each.
He said the redemption date of the offer will be September 7, 2020 implying that investors of this particular issuance will receive an interest payout on March 9, 2020 then receive back their principal and final interest payment alongside all other M- Akiba 2 investors.