This archive report was first published on 29 September 2019.
On September 29, 2019, CIC Insurance announced plans to raise new capital after paying its Sh5 billion bond next week.
The Nairobi Securities Exchange-listed firm will prioritize the sale of its 712 acres of freehold land in Kajiado and Kiambu counties before considering other options to replenish its balance sheet.
CIC Insurance chief executive Tom Gitogo stated that the company currently has enough cash and cash equivalents to settle the bond, adding that the need to boost its capital will come later.
"You cannot pay out that much without realigning your balance sheet for very long; so we may need to re-engineer our balance sheet with time," Mr. Gitogo said.
The sale of the land holdings, if successful, is expected to generate upwards of Sh10 billion and take care of the balance sheet repair.
Mr. Gitogo did not disclose what other fundraising options are on the table if the insurer is not able to sell the land.
