Here are our views on the news making headlines today for Kenya:
Centum to inject Sh1.2bn bond proceeds into K-Rep. Other Centum bond proceeds will go towards the investment firm’s real estate project in Entebbe, Uganda and power projects in Lamu and Olkaria, Nakuru.
Our View: We believe this Short- to medium-term milestones will enhance capital appreciation and this news augurs well for the company. The company strategy for the next 5 years is to develop, scale and grow investment capabilities in 8 new sectors, Agriculture, Education & Health, Energy, Financial Services, FMCG and ICT and further grow their existing Real Estate investments which portends well for the company’s performance going forward. Centum intends to generate 35%+ annualized return over the strategic period (2015-2019) and grow its Total Assets KES 120Bn [USD 1.38Bn] by 2019.We believe Centum’s predominantly Kenya-focused investment portfolio is likely to see capital appreciation over the next 30 months.