By VICTOR JUMA More by this AuthorBanking group NCBA is set to redeem its Sh7 billion corporate bond 91 days ahead of its December 14, 2020 maturity date, a move that will see it save Sh222.5 million in interest expenses. The Nairobi Securities Exchange-listed firm said it will now settle the debt on September 14 using internal cash flows. The bond was issued on December 22, 2014 by CBA Group which merged with the former NIC Group to create the NCBA Group. AdvertisementThe early bond redemption will reduce interest expenses and is one of the optimal uses of capital at this time when lending has become riskier with the outbreak of the Covid-19 pandemic, Mr Gachora said. NCBA’s redemption of its debt will further diminish the corporate bond market that has seen a drought of new issues in the wake of defaults and fraud.

Source: Daily Nation August 12, 2020 04:52 UTC