NMB shares rally after bond listing.
HAPA CHINI▼▼
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The
listing automatically pushed up NMB share price by 5.2 per cent yesterday after
opening the week trading at 1,710/- a piece to close the market at 1,800/-.
The
listing termed ‘Bell Ringing Ceremony’ was graced by the Permanent Secretary
for Ministry of Industry, Trade and Investment, Dr Adelhelm Meru. The PS hailed
the move and urged other investors in the private sector to join the bandwagon
of raising capital through markets.
“This
retail bond is expected to facilitate development of a vibrant retail bond
market and open doors for other companies, and municipal bodies to explore new
methods to meet financing needs,” he said.
NMB
Managing Director Ms Ineke Bussemaker, said the issuance of the bond was part
of the bank strategy to diversify its funding sources. “The three-year bond was
not only a major development in the sector but also in the retail market, as
NMB became the first bank to be oversubscribed by over double at the initial
target,” she said.
Ms
Bussemaker further added that the overwhelming response to the NMB bond
reinforces the need for banks to play a bigger role in developing the local
capital markets as well as promoting financial inclusion.
The
listed bond carries an interest rate of 13 per cent per annum and is set to
mature in three years. It was oversubscribed by 107 per cent. The proceeds of
the bond issue will be used for on-lending to the bank’s customers who include
individuals, micro, small and medium sized enterprises as well as large corporate
and Government institutions.
DSE
Chief Executive Officer, Mr Moremi Marwa said the success of the bond
demonstrates that investors are aware of the opportunities in the capital
markets.
“This
demonstrates that the public have the capability and the appetite to support
those who need to raise capital,” Mr Marwa said. NMB has 176 branches and more
than 600 ATMs across the nation and its operation covers 98 per cent of
districts in the country. NMB has over 2 million customers and employs over
3,000 staff
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During its two year run, the project will award approximately 100 major reporting grants and provide mentoring to support the best ideas for stories on development issues. Journalists who produce the best stories published or broadcasted in media that reach African audiences, will win a major international reporting trip. During its two year run, the project will award approximately 100 major reporting grants and provide mentoring to support the best ideas for stories on development issues. Journalists who produce the best stories published or broadcasted in media that reach African audiences, will win a major international reporting trip.
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