CIC goes for Sh4.5bn Co-op loan to pay corporate bond
Friday, June 5, 2020 0:01
By VICTOR JUMA
Co-operative Bank branch on Kenyatta Avenue, Nairobi.
FILE PHOTO | NMG
CIC Insurance Group #ticker:CIC took a last-minute Sh4.5 billion loan from its significant shareholder Co-op Bank #ticker:COOP to help repay its Sh5 billion corporate bond on October 2, 2019.
“The company acquired a loan facility of Sh4.5 billion from Co-operative Bank, a related party on October 1, 2019 at a rate of 12.5 percent with a tenure of five years,” the insurer said in the report.
The listed underwriter is the latest insurer to refinance its corporate bond after UAP Holdings took a Sh2 billion loan from Stanbic Bank to repay bondholders in July last year.
CIC had initially planned to settle the bond using proceeds from sale of its 712 acres of freehold land that dragged, prompting it to take the loan from Co-op.
