Publicly listed investment firm Centum Investments has raised 3.2 billion shillings through a private 5-year bond issue which is the largest such private issue in the history of Kenya’s Capital Markets. A private bond issue or placement means that Centum sought the funds from a small group of private investors.

“This successful issue is a mark of confidence by investors in Centum and we extend our gratitude to all investors who participated as well as the transaction team”, said Centum CEO James Mworia, adding that lowered interests have opened the opportunity to raise debt capital once more.

The cash raised will be used to carry out attractive deals in Real Estate and Private Equity which the firm has in the pipeline. The bond comprised of a mixed private issue of 5 year senior unsecured fixed rate notes and senior unsecured equity linked notes at annual interest rates of 13.5% and 12.75% respectively.

The decision to raise debt capital was led by the firm’s desire to pursue the investments which outweigh the amount of cash it has available. Outside bonds issued via private placement, Centum’s latest bond issue is the fourth largest after Housing Finance, Safaricom, and Kengen’s bond issues between 2009 and 2010.

Centum is Kenya’s largest investment firm with an investment portfolio worth 14.69 billion shillings as of March this year. Mr. Mworia says that the bond issue will boost shareholder returns and wealth going forward. Centum shares are currently trading at KES 11.90 as at 11.00 am from a closing high of KES 15.95 in April.