Consolidated Bank’s 1.7 billion shilling bond commenced trading at the Nairobi Securities Exchange yesterday becoming the first corporate bond to be listed on the Kenyan market this year.

The bond closed its first day with a subscription rate of 84 percent that raised 1.7 billion shillings according to an official statement on the listing. Twenty percent of the investors in the bond were retail investors, in what Consolidated Bank Chairman Eunice Kagane said was “…a strong indication of support for our bank from our customers and the wider market.” during a ceremony held for the bond's listing yesterday.

Bank CEO David Wachira said that “The funds invested in the Bank from the Bond Issue will be channeled towards small and medium enterprises, with the purpose of financing longer term facilities to expand customers businesses. The funding will be directed to businesses in various sectors which include: Project financing; Real Estate; Hospitality industry; Education among others.”

This was the first part of Consolidated Bank’s 4 billion shilling total bond which got CMA approval for issue and listing in June. The bond is a seven year fixed-rate bond tradable in denominations of 100,000 shillings with an annual interest rate of 13.25 percent.