This archive report was first published on 26 October 2021.
Nairobi, Kenya - October 26, 2021. The Capital Markets Authority (CMA) has noted a significant increase in investor confidence in the corporate bond market, following the oversubscription of East African Breweries Plc's (EABL) medium-term notes by 245 percent.
Although CMA had approved the issuance and listing of a five-year, fixed-rate medium-term note worth Kshs11 billion, EABL received applications for nearly Kshs38 billion, indicating a renewed interest in the corporate bond market.
CMA Chief Executive Wyckliffe Shamiah attributed the success to the growing issuer and investor confidence in the market. 'I am delighted with the performance of the EABL Medium Term Note, which is a testament to the renewed interest in the corporate bond market with growing issuer and investor confidence.'
Notably, this is not the only instance of enhanced investor confidence in the corporate bond market. In the last 11 months, CMA has approved the issuance and listing of several medium-term notes, including the Centum Investments Company Plc Kshs4 billion note and the Kshs8 billion multicurrency Family Bank note, which recorded an oversubscription of 147 percent.
As of June 30, 2021, the bond market turnover stood at Kshs301 billion, a 32 percent increase from the Kshs228 billion registered in Quarter 3, 2020.
