This archive report was first published on 25 September 2019.
On October 2, 2019, CIC Insurance Group will make history by repaying its Sh5 billion bond, a move that will save the firm Sh650 million in annual interest expenses.
The five-year bond, issued in October 2014 with a 13 percent coupon, will be delisted from the corporate bond list at the Nairobi Securities Exchange (NSE) upon redemption.
Although CIC had initially declined to disclose how it would fund the debt settlement, the firm recently sold 712 acres of freehold land in Kajiado and Kiambu counties, which is expected to earn it upwards of Sh10 billion.
This move follows in the footsteps of other corporate bond issuers, including UAP Holdings, which repaid its Sh2 billion bond in July using a loan from Stanbic Bank, and I&M Holdings, which repaid its Sh3.6 billion bond in March.
