M-Akiba Phase Two Undersubscribed By 75.2% Despite Deadline Extension

M-Akiba (Source - Hapakenya)

Despite extending the deadline for second issue by 52 days, the M-Akiba retail bond has failed to hit the target having achieved a subscription of 24.8% equivalent to Sh 247.8 Million.

Treasury had targeted to raise Sh 1.0 Billion with a greenshoe option of a further Sh 3.85 Billion if there was sufficient demand.

The infrastructure officially closed on Monday 11th Sept attracting 303,534 investors but only 5,988 participated in the offer.

The offer opened on 30th June and was to close on 21st of July but Treasury decided to extend the sale by eight weeks to 11 September. The issue had non-taxable interest rate of 10 percent for a tenure of three years.