Yesterday CFC Stanbic bank announced that their Ksh 4 billion bond was oversubscribed by 27%. This was the first portion of the bank’s Ksh. 5 billion shilling multi-currency medium term note.
The 7 year bound was jointly arranged by CFC Stanbic Bank and SBG securities. The bound raised Ksh. 5.03 billion with fund managers taking up 88% of the notes. Retail investors took up 3% and insurance companies took up 9%.
CFC Stanbic CEO Greg Brackenridge said the success of the bound demonstrated the faith investors had in the bank and also shows that there is investor appetite for bounds.
Interest on the bond will be paid semi-annually in June and December every year starting from June 2015. The bond is fixed at a rate of 12.95 %.
This is the 3rd bond by CFC Stanbic Bank and is the bank’s largest single bond to date.