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Corporate financing for publicly traded companies in Kenya
Kenya’s vibrant and growing economy is a hub for corporate innovation and
international trade. Companies listed on the Nairobi Securities Exchange (NSE) play a
pivotal role in driving this growth, and access to tailored financing solutions can
unlock even greater potential. At Smith & Berkeley Kenya, w e are committed t o
providing financial solutions designed t o empower Kenyan businesses t o achieve
their strategic goals and foster economic development.
Product Overview
Loan Purpose:
Tailored to support diverse corporate needs, including: Expansion Projects | Working Capital Support | Debt Refinancing | Capital Expenditure
Currency:
United States Dollar (USD)
Facility Size:
$10M - $ 500M
Key Features
- Flexible Tenor : Loan terms of up to 3 years, with grace periods aligned with the company's cash flow.
- Competitive Interest Rates: Interest rates based on LIBOR/SOR, with a risk-adjusted margin.
- Repayment Structure: Options for bullet repayment or amortisation, structured to fit the company's financial capacity.
- Security Requirements: The Listed Company's free trade stock or the Shareholders shares in the Listed Company
- Loan Disbursement: Funds are disbursed directly to the company's designated USD account upon completion of documentation a n d satisfaction of preconditions.
Eligibility Criteria
- Listing: Must be a publicly listed company on t h e NSE.
- Operational Track Record: A minimum of 5 years of operation.
- USD Revenue Streams: Demonstrated ability to generate USD revenues (e.g., export earnings, offshore investments).
- Credit Profile: Strong credit history supported by audited financial statements for the last 3 years.
- Risk Standards: Compliance with Smith & Berkeley Kenya's internal credit and risk criteria.
Application Process
Preliminary Assessment | Submit a letter of intent detailing the financing need.
Initial review of key company documents (financials, corporate profile, governance structure).
Loan Application:
Submit comprehensive project plans, cash flow projections, and other necessary documents.
Credit Approval:
Loan terms are finalized upon credit committee approval.
Due Diligence:
Smith & Berkeley Kenya conducts a n in-depth assessment o f financial health, market position, and management capacity.
Disbursement:
Loan agreements and security documentation are executed before funds are released
Benefits
- Large Capital Injections: Provides significant funding for transformative projects.
- Foreign Currency Hedge: Mitigates risks associated with local currency devaluation.
- Custom Financing Solutions: Tailored structures to address the unique needs o f NSE-listed companies.
- Enhanced Liquidity: Supports competitiveness in both local a n d international m a r k e t s .
Risk Mitigation Measures
- Thorough Due Diligence: Comprehensive a s s e s s m e n t of t h e company's financial a n d market standing.
- USD-Based Revenue Requirement: Ensures a d e q u a t e USD inflows f o r repayment.
- Collateralized Loans: Loans a r e backed by assets with sufficient value coverage.
- Monitoring Covenants: Enforces financial discipline throughout the loan term.