REAL PEOPLE KSHS 1.63 BILLION BOND STARTS TRADING ON THE NAIROBI SECURITIES EXCHANGE

Nairobi, August 19th, 2015 – Real People’s Kshs. 1.63 billion bond has today started trading at the Nairobi bourse with the proceeds expected to further boost the company’s lending capacity.  The medium term note that was launched in early August 2015 targeting retail, high net worth individuals and institutional investors saw investors take up Kshs 1,363,900,000 in 5 year Fixed Rate Notes and Kshs 270,300,000 in 3 year Fixed Rate Notes .

The first tranche under the Kshs 5 billion programme was offered in 3 year and 5 year Fixed Rate Note as per the Information Memorandum approved by the Capital Markets Authority (CMA).

“This is a significant milestone as a financial institution. We are happy to be the first credit only financial institution to have successfully gone through the entire bond process and have the Notes listed at the Nairobi Securities Exchange,” noted Daniel Ohonde, Chief Executive Officer, Real People East Africa.

He added: “At this stage, we continue to grow and play a big role in the financial sector. We wish to thank CMA, Nairobi Securities Exchange (NSE) and our transactional advisors – NIC Capital for their support throughout the process.”

Speaking at the Ceremony, NSE Chief Executive Mr. Geoffrey Odundo congratulated Real People saying that “The high uptake of the Real People Bond from local investors is testament of Kenyans’ confidence in the Real People growth strategy and a clear indication of Kenyan companies great confidence in the fund raising opportunities that our Capital Markets have to offer.We at the Exchange applaud Real People Kenya Limited on the successful listing of their Bond”.

Mr. Odundo further elaborated that listing on the bourse enables an institution to improve their liquidity, unlock their value, enhance their company profile, raise their governance standards while maximizing value for their shareholders. He urged corporates to look no further than the Exchange, as they seek to raise capital to fund their various initiatives.

The bond process was led by NIC Capital as the transaction advisors, PKF, the reporting accountants, Coulson Harney, as the legal advisors, NIC Bank as the registrar and the receiving bank. 

About Real People Kenya Limited

Real People is a non-deposit taking financial solutions provider for businesses and homes. At Real People, we target the mass market with a particular interest in the Small and Medium Enterprises sector in South Africa and East Africa (Kenya, Uganda and Tanzania). We started operations in Kenya in 2006 and has over the years expanded to cover other regional countries like Uganda and Tanzania. From its head office in Nairobi, the company serves these markets through a network of branches and satellite offices in Kenya, Uganda and Tanzania. Currently, we have 10 main branches and seven satellite offices in Kenya, three branches in Uganda and two branches in Tanzania.  Our East Africa operations are built on a focused portfolio of businesses. Our services are anchored on the provision of responsible finance solutions to individuals and businesses through tailored products such as Business Finance Loan, Asset Finance Loans, Home Construction Loans and Home Improvement Loans.

About The Nairobi Securities Exchange

The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE),an associate member of the Association of Futures Markets (AFM) and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiative (SSE).

 Bell RingingEric Ngala, Head Of Human Capital-Real PeopleNthenya Mule,BoD-Real PeopleGK7_7429

 

 

 

REAL PEOPLE GETS CMA APPROVAL FOR A KSHS. 5 BILLION BOND PROGRAM

The bond is expected to inject more capital to the lender for growth through onward lending.

Nairobi, Kenya 1st July, 2015…………..Real People Kenya Ltd has received approval from the Capital Markets Authority (CMA) to issue upto Kshs. 5 billion in the Kenyan market, through a medium term note program. In a letter addressed to Real People, CMA also granted the lender approval to list the notes on the Fixed Income Securities Investment Segment of the Nairobi Securities Exchange.

Real People operates as a credit only Micro Finance Institution (MFI) and intends to use the proceeds raised from the bond to fund it’s core lending business in the market. Speaking in his office, Mr. Daniel Ohonde the CEO for Real People in East Africa said that the debt issue will be in two to three tranches of Kshs. 2 billion, KES 1.5 billion and Kshs. 1.5 billion over the next 5 years. He added that “The approval by Capital Markets Authority allows us to raise the first tranche of Kshs. 2 billion.”

NIC Capital Limited is the Lead Arranger for the transaction while Coulson Harney Advocates are the Legal Advisers. According to NIC Capital MD, Maurice Opiyo, the bond provides the company an opportunity to tap the favorable conditions prevailing in the debt market to raise additional capital as it pursues its strategic objectives.

“Investor appetite for debt securities has been positive going by the success of recent bond issues,” said Opiyo. The minimum lot investors can apply for the bond is Kshs.100, 000.

Real People which is currently the largest credit-only MFI in Kenya – holding the largest loan book amongst its peers – has over its six years of existence lent over Kshs. 10 billion to over 25,000 SME’s. The company becomes the first credit-only MFI in Kenya to issue a public bond.

The company has a wide geographic footprint of seventeen outlets across the major towns in Kenya.

ABOUT REAL PEOPLE

Real People is a credit – only MFI partnering with upper-end micro-enterprise and SME’s through their growth and development journey.

The organization shares its financial expertise to improve lives through responsible lending. It positions itself as a platform for business growth through sustainability and improvement. In order to achieve financial wellness it applies a unique value system dubbed SCRIPT (Self-Improvement, Customer-Centricity, Innovation, Partnership and Teamwork).

Real People currently has a loan book of Kshs. 2.5 billion and expects to grow it by 60% in this financial year.