Uganda telecom lists sh54b notes on market
Sep 16, 2003
Uganda telecom yesterday morning listed its notes on the Uganda Securities Exchange (USE).
By Emmy Olaki
Uganda telecom yesterday morning listed its notes on the Uganda Securities Exchange (USE).
Aimable Mpore, the uganda telecom managing director said, “I am proud of our team and board, and that why we can tell the investors that they can come and buy our notes and they won’t be disappointed. Invest in our company because our future is bright,†Mpore said.
The company hopes to raise sh54b in five years for expanding operations. The notes are payable at an interest rate of 1.65% of the 182-day Treasury bill points.
At the close of trading yesterday there was an outstanding offer of sh10,000,000 at sh103.9222
A note is a debt which the issuer must pay back over a specified period of time. A bond on the other hand is also a debt instrument, but the issuer borrows a lump sum at once.
Leo Kibirango, the chairman of the Capital Markets Authority, the regulatory body, said, “I am glad that uganda telecom has gone through the drills, and we are satisfied that that it has reached the level where this product could be offered to the market. The market is still shallow, because there are few products. We need more, so that we expand people’s choices,†he said.
Notes or bonds are often preferred to bank borrowing, because this reduces the overall cost of borrowing, and gets more people involved in the business.
USE acting chairman, Samwiri Njuki, said the Government should play a leading role in boosting capital markets. He cited how the New York stock market started out with five government bonds.
Uganda telecom yesterday morning listed its notes on the Uganda Securities Exchange (USE).
Aimable Mpore, the uganda telecom managing director said, “I am proud of our team and board, and that why we can tell the investors that they can come and buy our notes and they won’t be disappointed. Invest in our company because our future is bright,†Mpore said.
The company hopes to raise sh54b in five years for expanding operations. The notes are payable at an interest rate of 1.65% of the 182-day Treasury bill points.
At the close of trading yesterday there was an outstanding offer of sh10,000,000 at sh103.9222
A note is a debt which the issuer must pay back over a specified period of time. A bond on the other hand is also a debt instrument, but the issuer borrows a lump sum at once.
Leo Kibirango, the chairman of the Capital Markets Authority, the regulatory body, said, “I am glad that uganda telecom has gone through the drills, and we are satisfied that that it has reached the level where this product could be offered to the market. The market is still shallow, because there are few products. We need more, so that we expand people’s choices,†he said.
Notes or bonds are often preferred to bank borrowing, because this reduces the overall cost of borrowing, and gets more people involved in the business.
USE acting chairman, Samwiri Njuki, said the Government should play a leading role in boosting capital markets. He cited how the New York stock market started out with five government bonds.