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Monday, March 31, 2008

Official Safaricom Prospectus is out...

Finally the (online) prospectus that should have available at the launch is now out... there are some restrictions regarding the download but here is the link...

Safaricom Prospectus


BTW, MJ - who I thought was S.African - is a US citizen...

Since most banks will provide shares financing, I expect a substantial over-subscription. Most banks will accept the (expected) refunds & alloted shares as security. Many banks want the interest pre-paid for 45-60 days when you take the loan.

Sampling of banks offering loans:

  • Equity - one of the receiving banks has a sweet deal. They lend money that gets back to them immediately with the application. They can re-lend the funds...
  • CFC Bank - 75% LTV.
  • I&M - 75% LTV (max loan is KShs 5mn). They are flexible & great to work with but they do not want 'smaller' loans since they don't have the capacity to handle too many clients.
Transnational - Fanikisha account

There are many more out there... I haven't checked... The banks are limiting the total loans they give for Safaricom to manage risk & liquidity, so apply early... or you will not be able to borrow...

The 'claw-back' from the foreign pool is unlikely since it would require a 200% over-subscription from the domestic pool. This means an extra KShs 65bn has to be applied for before the clawback clause kicks in. Unlikely. Furthrmore, the clawback is proportional meaning its only to the extent the 200% level is maintained.

3 comments:

Anonymous said...

The prospectus has 10B shares at KSh0.05 Is this some typo?

Ssembonge said...

It looks like the leaked prospectus was not the final version and there is an addendum.

The disclaimer seems odd yet part of the offering is specifically targeted towards foreign investors regardless of their country of origin.

bankelele said...

KCB, NBK and Diamond Trust claim up to 100%. EABS and ABC are also offering Safcom loans as are many SACCO's and employers. Can the banking sector absorb all this?

Ssembonge: The leaked version was quite complete. The company ran an advert in the Saturday newspapers (29/3) noting that that the latest 9-mo results were missing from the published prospectus but could be found in the download copy