Kshs 263M raised during re-open 3 of M-Akiba bond issuance

Written By: Claire Wanja

The third tranche of the M–Akiba 2 Re-open 3 which was on offer last month from the 19 and closed on Friday last week attracted saw a total of 263,600,000 million shillings raised against a target of Kshs.500,000,000 million, the highest amount raised during the Primary Market Offer.

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The total amount raised to date crosses the 1 Billion Mark to stand at Kshs. 1,045,120,100.

Announcing the results of the M-Akiba Retail Infrastructure Bond Issue MAB/2/2017/03 “Re-Open 3 of August 2019”, the National Treasury (TNT), the Central Depository and Settlement Corporation (CDSC) and the Nairobi Securities Exchange (NSE) further stated that today (Thursday) 11,239 investors received Kshs. 31,387,500 in interest payments.

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The tranche also saw an additional 51,461 new accounts bringing the total M-Akiba accounts to 565,725.

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This tranche was a combination of two (July and September) issuances of Kshs.250m each. The redemption date of this offer is September 7, 2020. Meaning investors of this particular issuance will receive an interest payout on 9 March 2020 then receive back their principal and final interest payment alongside all other M- Akiba 2 investors.

CDSC Chief Executive Rose Mambo noted, “CDSC continues to facilitate the settlement of M-Akiba transactions traded on the NSE and shall manage coupon payments and redemption of the bond at maturity.

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On Wednesday, CDSC paid out a total Kshs 31,387,500 in interest payments to M-Akiba investors. This brings total amounts paid out in interest payments to Ksh.98,560,000 since the first Issuance”.

The NSE Chief Executive Geoffrey Odundo noted, “It is exciting for us to see the impressive growth of M-Akiba as we witness it cross the Kshs.1 Billion mark. We continue to honour our promise to our customers by offering them an efficient investment platform; as illustrated by the payouts made to customers on September 9, 2019. We urge the public to invest in the secondary market by dialing *889# and get to benefit from this lucrative platform”.

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M-Akiba seeks to deepen and enhance financial inclusion through leveraging on increased mobile phone penetration to democratize access to formal financial systems for savings and investments.

More Kenyans are now able to participate in Government bonds by investing a minimum Kshs. 3,000.00, which is considerably lower in comparison to the minimum Kshs. 50,000.00 required to invest in other Treasury bills and bonds.


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