Centum Investments

Centum Real estate has finally floated its Ksh 4 million housing bond that was announced more than two weeks ago.

The purpose of the floatation is to finance the ongoing construction of its affordable, middle-income, and high-end housing projects in Kenya.

The paper on November 13 following regulatory approval by the Capital Markets Authority (CMA) and is set to close on December 2.

Centum Real Estate Managing Director Samuel Kariuki said the bond offers an opportunity for investors to get a piece of Kenya’s real estate pie without taking the risk of getting involved in the actual development of the projects.

The company had earlier said the bond will not reflect on the books of the parent company, Centum Investment. The paper is a 3-year, zero-coupon bond issued at a discount rate on the 3-year Treasury bond, plus a market-determined margin.

Centum Real Estate is developing a number of affordable, middle-income, and high-end housing in Ruaka and Kasarani as well as Two Rivers.

The company said if the bond is oversubscribed, Centum Real Estate will have the greenshoe option of taking up to Ksh2 billion more based on its strong balance sheet (Ksh. 35 billion).

Centum Real Estate plans to list the paper at Nairobi Securities Exchange after the ongoing private placement. Investors who purchase the bond will have the option of investing in an equity-linked component.

Read; Centum To Shift More Weight From Real Estate to Private Equity

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