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The East African : January 20th 2014
50 BONDS WEEKLY STATISTICS 17-Jan-2014 GOVERNMENT OF KENYA FIXED RATE TREASURY BONDS Issue No. TWO YEAR BONDS FXD 1/2012/2Yr FXD 2/2012/2Yr FXD 3/2012/2Yr FXD 4/2012/2Yr FXD 1/2013/2Yr FXD 2/2013/2Yr FXD 3/2013/2Yr FXD 4/2013/2Yr FIVE YEAR BONDS FXD 1/2009/5Yr FXD 1/2010/5Yr FXD 2/2010/5Yr FXD 1/2011/5Yr FXD 1/2011/5Yr FXD 1/2011/5Yr FXD 1/2012/5Yr FXD 1/2013/5Yr FXD 2/2013/5Yr FXD 3/2013/5Yr SEVEN YEAR BONDS FXD 1/2007/7Yr EIGHT YEAR BONDS FXD1/2006/8Yr FXD1/2007/8Yr NINE YEAR BONDS FXD 1/2006/9Yr TEN YEAR BONDS FXD 1/2006/10Yr FXD 2/2006/10Yr FXD 1/2007/10Yr FXD 1/2007/10Yr FXD 1/2008/10Yr FXD 2/2008/10Yr FXD 3/2008/10Yr FXD 1/2009/10Yr FXD 1/2010/10Yr FXD 2/2010/10Yr FXD 1/2012/10Yr FXD 1/2013/10Yr ELEVEN YEAR BONDS FXD1/2006/11Yr TWELVE YEAR BONDS FXD1/2006/12Yr FXD1/2007/12Yr FIFTEEN YEAR BONDS FXD1/2007/15Yr FXD2/2007/15Yr FXD3/2007/15Yr FXD1/2008/15Yr FXD1/2009/15Yr FXD1/2010/15Yr FXD2/2010/15Yr FXD1/2012/15Yr FXD1/2013/15Yr FXD2/2013/15Yr TWENTY YEAR BOND FXD1/2008/20Yr FXD1/2011/20Yr FXD1/2011/20Yr FXD1/2012/20Yr Issue Date Maturity Date 30-Apr-12 27-Aug-12 29-Oct-12 24-Dec-12 25-Feb-13 25-Mar-13 26-Aug-13 24-Dec-13 21-Sep-09 24-May-10 30-Nov-10 31-Jan-11 31-Jan-11 31-Jan-11 28-Jan-13 29-Apr-13 1-Jul-13 25-Nov-13 30-Jul-07 27-Feb-06 26-Feb-07 24-Apr-06 27-Mar-06 29-May-06 29-Oct-07 29-Oct-07 29-Oct-07 28-Jul-08 29-Sep-08 27-Sep-09 26-Apr-10 1-Nov-10 25-Mar-13 26-Aug-13 25-Sep-06 28-Aug-06 28-May-07 26-Mar-07 25-Jun-07 26-Nov-07 31-Mar-08 26-Oct-09 29-Mar-10 25-Apr-11 24-Sep-12 29-Jul-13 29-Apr-13 30-Jun-08 30-May-11 30-May-11 27-May-13 TWENTY FIVE YEAR BOND FXD1/2010/25Yr THIRTY YEAR BOND SDB 1/2011/30Yr Issued Value in millions 28-Apr-14 Coupon (%) 6,418.05 25-Aug-14 16,312.35 27-Oct-14 13,786.50 22-Dec-14 20,777.16 23-Feb-15 20,468.11 23-Mar-15 24-Aug-15 21-Dec-15 15-Sep-14 18-May-15 23-Nov-15 13,239.10 3,060.25 14,929.20 25-Jan-16 22,083.10 25-Jan-16 22,083.10 25-Jan-16 22,083.10 22-May-17 17,687.98 23-Apr-18 20,165.56 25-Jun-18 19-Nov-18 21-Jul-14 17-Feb-14 16-Feb-15 13-Apr-15 14-Mar-16 16-May-16 16-Oct-17 16-Oct-17 16-Oct-17 16-Jul-18 28-Sep-18 15-Apr-19 12,888.00 14,946.55 8,269.85 3,318.80 13,764.30 2,656.90 3,451.05 5,028.10 9,308.80 9,308.80 2,992.75 13,504.70 4,151.80 4,966.85 13-Apr-20 19,394.15 19-Oct-20 18,849.90 13-Jun-22 10,520.46 19-Jun-23 526.69 11-Sep-17 13-Aug-18 13-May-19 7-Mar-22 6-Jun-22 4,031.40 3,900.95 4,864.60 3,654.60 7,236.95 7-Nov-22 18,030.20 13-Mar-23 7-Oct-24 10-Mar-25 8-Dec-25 6-Sep-27 7-Feb-28 10-Apr-28 7,830.90 9,420.45 10,206.45 13,513.10 21,089.45 6,337.38 15,646.23 5-Jun-28 20,360.35 5-May-31 5-May-31 1-Nov-32 Traded yield (%) 19,967.33 17,927.92 25,252.12 13.826 11.114 12.496 12.382 12.844 12.940 12.939 11.553 9.5000 6.9510 6.6710 7.6360 7.6360 11.3000 7.6360 11.8550 12.8920 11.3050 11.9520 9.7500 13.2500 12.7500 13.5000 14.0000 14.0000 10.7500 10.7500 10.7500 10.7500 10.7500 10.7500 8.7900 9.3070 12.7050 12.3710 13.7500 14.0000 13.0000 14.5000 13.5000 12.5000 12.5000 12.5000 10.2500 9.0000 11.0000 11.2500 12.0000 9,365.80 9,365.80 4,389.35 28-Jun-10 28-May-35 20,192.50 28-Feb-11 21-Jan-41 22,136.45 13.7500 10.0000 10.0000 12.3500 11.2500 12.0000 Previous Price (%) 107.4578 100.2844 101.3364 100.3964 101.8645 99.9662 102.8728 100.921 99.0854 92.6968 91.6247 93.376 92.7497 93.1702 101.2673 103.5990 94.7669 101.985 98.4657 102.7421 101.6909 100.8356 104.8710 105.1580 101.7801 101.7801 96.8287 86.2114 95.9936 95.5775 85.8422 83.4876 103.68 101.7663 106.5573 107.5303 101.9314 112.8049 106.7821 97.3861 102.6971 99.9569 82.0344 78.4434 87.0177 85.4105 93.53 13.475 106.1688 81.2163 81.2163 92.9948 82.5120 86.0423 500,000,000 Total Value traded (kshs) The EastAfrican MARKETS JANUARY 18-24,2014 UNDERSUBSCRIBED Traders at the Uganda Secutiries Exchange. There has been poor investor appetite for the NIC rights issue. Picture: File Investor jitters lead to low uptake of NIC rights The t≥ansaction ≥aised $2.8 million against a ta≥get of $3.3 million By BERNARD BUSUULWA Special Correspondent J itters among shareholders of the National Insur- ance Corporation (NIC) and poor investor appetite at the Uganda Securities Exchange (USE) have prompted a lowerthan-expected uptake for the insurer’s rights issue, leading to under-subscription of 16.2 per cent. The transaction raised Ush7 billion ($2.8 million) against a target of Ush8.4 billion ($3.3 million) set by NIC, according to data from Crested Stocks and Securities Ltd, the joint transaction adviser and lead sponsoring broker for the rights issue. Due to this funding gap, NIC’s expansion plans may be constrained, with new monies only capable of meeting capital requirements set by the industry regulator, observers claim. New capital requirements 3,500,000 for insurance companies are scheduled for implementation in July; paid up capital for life insurance providers and general insurance providers has been increased to Ush3 billion ($1.2 million) and Ush4 billion ($1.6 million) respectively. NIC’s share price averaged Ush30 ($0.01) last year, down from its initial public offering price of Ush45 ($0.02). Together with the falling market share, the drop has discouraged several fund managers from investing in the stock. Senior NIC executives say inadequate proceeds from the rights issue will affect expansion. “The cost of our expansion plans might be revised to fit into limited funds raised from the rights issue. We are yet to decide on further actions for mobilising extra funds to bridge the shortfall. Nevertheless, we anticipate premium incomes to grow by 25 per cent this year,” said Wale Oluwaniyi, NIC’s Chief Finance Officer. The company’s gross premi- ums rose from Ush3.8 billion ($1.5 million) in December 2012 to Ush4.4 billion ($1.8 million) by close of June 2013. Profit before tax grew from Ush2.2 billion ($887,464) to Ush2.7 billion ($1.1 million) during the same period. Though NIC’s majority shareholder Industrial and General Insurance (IGI) of Nigeria took up its full allocation, plus additional shares that helped it retain 60 per cent ownership, two prominent shareholders who acquired a 20 per cent stake during the IPO declined to take up their shares, citing unimpressive results posted by the firm since it listed in 2010. These were Crane Bank Ltd and Sudhir Ruparelia, who were allocated 66.5 million shares under the rights issue; IGI has 193 million shares. Following their refusal to buy their rights shares at Ush5 ($0.002), the two shareholders placed an offer of Ush30 ($0.01) at the USE for the entire allocation but failed to find a buyer, market sources claim. They consequently gave up their shares, enabling retail investors to acquire 12 million extra shares. The remaining shares however, did not attract a buyer, leaving the company stuck with them. In contrast, retail investors achieved more than 100 per cent subscription on shares allocated, with most of them opting to preserve the value of their original stocks as they wait to cash in on a growth turnaround strategy being initiated by the company, stockbrokers say. After completion of the rights issue, IGI’s shares in NIC rose to 357,676,615 while Crane Bank and Ruparelia’s shareholding fell to 7 per cent and 6.9 per cent respectively. “Reluctance to take up rights shares by two big local investors clearly affected the outcome of this transaction. However, the more worrying issue is tied to potential decline in share price during the aftermath of the transaction as witnessed in previous rights issues,” said Robert Baldwin, CEO of Crested Stocks and Securities Ltd.
January 13th 2014
January 27th 2014