The recently reopened M-akiba infrastructure bond has been listed on the secondary market at the NSE. The mobile based bond raised KSh197 million against the targeted KSh250 million; translating to 79 percent subscription rate. The bond was on offer for two weeks from 25th February to 10th March and it attracted 82,829 new investors in that period.
The M-akiba 2 will pay 10 percent interest per annum every
six months until its maturity date on 7th September 2020. The first
interest payment is expected on 9th September 2019.
M-akiba 2 was highly publicized on social media after the first mobile-bond issue in July 2017 received a subscription rate of only 24 percent partly due to low publicity.
The mobile-based M-akiba was launched with the aim of attracting more retail investors into the fixed income side of the capital markets. The debt instrument has a low entry requirement of only KSh3,000; unlike other bonds whose minimum investment amount is KSh50,000. Since its launch in March 2017, the M-akiba has brought 450,000 new investors into the market; an indication of its potential to attract more local participants into the capital markets.
During the secondary listing, Nairobi Securities Exchange
CEO Mr. Geoffrey Odundo said, “The 79 percent subscription rate is a clear
indication of Kenyans’ investment appetite and an affirmation of the need for
more innovative financial products in our market…”
The Chief Executive Officer of CDSC Ms. Mambo said, “….Since the first issue in March 2017, CDSC has paid out, on behalf of the government, a total of KSh47.3 million in interest, to M-akiba investors….” An additional KSh12.4 million was paid out on 11th March.
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