Centum Investments is set to repay a Sh. 4.3 billion corporate bond it issued in 2012.
The corporate issue, which matures on Monday, comprised of two bonds. The first was made up of a floating rate note of Sh. 2.9 billion with a 13.5 per cent coupon while the second bond known as equity linked note was a Sh. 1.3 billion issue with a 12.75 per cent coupon.
According to a statement from the investment firm, investors are in for a huge gain, with those in the equity linked note receiving an additional Sh. 191 million. This means that these investors will have gotten an annual return rate of 14.9 per cent.
According to the statement, Centum closed the year ended March with a cash position of Sh. 4.6 billion, backed by short-term credit facilities that increased available liquidity to Sh. 6 billion.
Centum further added that it has a series of proprietary investments which it will fund using internally generated funds. “We have a strong business outlook, with the overall business at a point in its maturity where we expect to generate significantly higher cash flows going forward and rely less on third party borrowings,” said Centum. “The ability to repay more than Sh. 7.2 billion in the midst of a difficult year and still fund significant investments is testament to its strength.”
