The Consolidated Bank of Kenya plans to issue a medium term bond for the sake of meeting supplementary capital as well as onward lending to its clients. The Capital Markets Authority (CMA) approved the issue and listing of the Ksh4 billion corporate bond on 21^st June 2012. The bank reports that senior notes will be valued at Ksh. 1.75 billion while subordinated notes will amount to Ksh. 0.25 billion. The MTN will also have a fixed interest rate priced off a 5 year treasury bond plus a margin and floating rate notes which will be priced off 182 day T-bills plus a margin. The seven year tenor opens on 9^th July 2012 and closes on the 20^th. The minimum amount to invest is Ksh.100,000 with a fixed interest rate of 13.25%.

According to Head of Business at NIC Securities, Samuel Gichohi,  the bank intends to raise Ksh2 billion. Mr Gichohi states that 250 million from the first tranche will be used to increase their capital. The bonds will be allocated on the 23^rd of July 2012. Listing and trading will commence on the 2^nd of August 2012.

Ksh. 3 billion from the proceeds will be used for on lending to clients and Kes1 billion will be used to shore up Tier II capital.