M-AKIBA

Third sale of M-Akiba attracts 53% of investment

The third tranche OF M-Akiba brought in additional 51,461 investors, making the total M-Akiba accounts to 565,725

In Summary

•The National Treasury, the Central Depository and Settlement Corporation (CDSC) and the Nairobi Securities Exchange (NSE) has announced to have received Sh263.6 million against a target of Sh500 million for the re-opened M-Akiba 2 bond Issue MAB/2/2017/03.

National Treasury, Public Debt Management Office Director General Wohoro Ndohho (centre) rings a bell at Nairobi Securities Exchange (NSE) yesterday to launch the listing of M-Akiba bond, an exclusively mobile trade bond-a first in the world. With him are NSE Chief Executive Geoffrey Odundo (left) and his counterpart at Central Depository Settlement Corporation (CDSC) Rose Mambo.Photo Faith Mutegi
National Treasury, Public Debt Management Office Director General Wohoro Ndohho (centre) rings a bell at Nairobi Securities Exchange (NSE) yesterday to launch the listing of M-Akiba bond, an exclusively mobile trade bond-a first in the world. With him are NSE Chief Executive Geoffrey Odundo (left) and his counterpart at Central Depository Settlement Corporation (CDSC) Rose Mambo.Photo Faith Mutegi

The National Treasury, the Central Depository and Settlement Corporation (CDSC) and the Nairobi Securities Exchange (NSE) has announced to have received Sh263.6 million.

This represents 52.7 per cent performance against a target of Sh500 million for the re-opened three M-Akiba 2 bond Issue MAB/2/2017/03.

The third tranche of the government's retail infrastructure bond was re-opened on August 19 and closed on September 6, bringing on board additional 51,461 investors, making the total M-Akiba accounts to 565,725.

This tranche trading through mobile phones and NSE a secondary market, was a combination of two issuances closed in July and September amounting to Sh250m each.

In a second sale made in May, the M-Akiba 2 attracted Sh187 million against the target Sh250 million.

The first sale of M-AKiba 2 attracted 79 per cent subscription rate.

The maturity date of this offer is September 7, 2020.

“Investors of this particular issuance will receive an interest payout on 9 March 2020 then receive back their principal and final interest payment alongside all other M- Akiba 2 investors," Treasury said.

M-Akiba is meant to increase financial inclusion and encourage savings among Kenyans by leveraging on increased mobile phone penetration.

mobile account-holders can invest a minimum Sh3,000 compared to a minimum Sh50,000 required in the investment of Treasury bonds and Bills.

 

M-Akiba makes a 10 per cent return compared to commercial banks’ saving rate of 4.71 per cent.

The total amount raised to date in the M-Akiba crosses the 1 billion mark to stand at Sh1,045,120,100.

CDSC has said about 11,239 investors received Sh31.387 million in interest payments.

“This brings total amounts paid out in interest payments to Sh98.56 milion since the first issuance,” CDSC Chief Executive Rose Mambo said.

“CDSC continues to facilitate the settlement of M-Akiba transactions traded on the NSE and shall manage coupon payments and redemption of the bond at maturity."

The first sale of M-Akiba bond in June 2017 targeting Sh1 billion, raising only Sh247.47 million.