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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.