Centum Real Estate Limited has listed its KES 3 billion bond project on the Nairobi Stock Exchange (NSE).
The NSE listing will give buyers of the three-year bond a platform to trade the security before it matures in 2023.
The listing follows the approval of the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE).
“Listing gives investors flexibility and more options to cash out or rebalance their portfolios as needed over the life of the bond,” said Centum Real Estate Managing Director Samuel Kariuki.
Centum Real Estate Limited, a 100% subsidiary of Centum Investment Company Plc, listed on the NSE, closed on December 16 last year the issuance of the Ksh. 4 billion project bonds with a green shoe option from Ksh. 2 billion.
Geoffrey Odundo, Managing Director of NSE, said the ability of issuers such as Centum Real Estate Limited to come into the market and raise capital is a testament to the recognition of their quality and the growing investor appetite in our market. for debt securities.
“The NSE congratulates Centum Real Estate Limited on listing the bond. The success of the Bond and those of other corporate debt issues is a clear indication of the depth of capital markets as a good avenue for financing well structured and innovative instruments, ”said Mr. Odundo.
The first tranche of the bond successfully raised KES 3 billion, which is being rolled out to finance the construction of the company’s ongoing housing projects.
“We expect dynamic trading in the Centum Real Estate Bond as it offers a relatively low risk investment, short term maturity and a relatively high coupon rate,” said Kabaki Wamwea, CEO of Private Wealth Capital. “Corporate bonds offer investors a lucrative opportunity to diversify away from the risk of concentration in their fixed income portfolios,” he added.
Centum Real Estate has the opportunity to come back to the market to raise more liquidity in fresh installments of the bond.
“We are on budget and on time for all of our projects and continue to deliver on our promises to homebuyers.” Mr. Kariuki said.Centum Real Estate has 1,358 housing units under construction and 1,515 currently being validated by the market. Of the units under construction, 77% are already pre-sold.The potential income of the company from the units sold is Ksh. 10.3 billion, including Ksh. 3.3 billion have been collected to date.Centum Real Estate also made sales of land in its Vipingo development in the amount of […]
