An investor at the Nairobi Securities Exchange. FILE PHOTO | NMG 

Mortgage financier HF Group #ticker:HFCK is set to pay Sh192.9 million interest on the Sh3 billion corporate bond issued about six years ago.

The group announced Friday that the interest will be paid mid this month, a move with a potential to lift the bond market confidence from the ashes of Chase Bank, Imperial Bank and Nakumatt defaults.

“We advise that the 12th payment of HFC bond tranche II will be paid on 15 October 2018 to bondholders whose names appear on the bond register as at close of business on Monday 1 October,” said HF.

The announcement comes amid the group posting 88.1 per cent decline in 2018 half year net profits to Sh6.8 million followed by laying off 36 employees last month. Its managing director Frank Ireri is also out on medical leave, with his term ending in March next year.


The 2012 bond, with a coupon rate of 13 per cent, is set to mature on October 14 next year.

Other Nairobi Securities Exchange bond set for next year’s maturity include that of Consolidated Bank of Kenya, I & M Bank #ticker:I&M, Britam #ticker:BRIT, KenGen #ticker:KEGN and Real People.

Last year, HFC received two short-term notes from NIC Bank #ticker:NIC and Co-operative Bank of Kenya #ticker:COOP valued at Sh800 million. The obligations had grown to Sh517.3 million on the NIC loan and Sh309.6 million for Co-op Bank as at close of last year.

It also had a Sh7 billion corporate bond repayment in October. In total, it made borrowings valued at Sh11.54 billion, according to information contained in its 2017 annual report. Top lenders were European Investment Bank (Sh3.78 billion), Symbiotics SA (Sh1.81 billion), Ghana International Bank (Sh1.55 billion) and Shelter Afrique at Sh1.06 billion.

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