Uganda telecom in bond offer
UGANDA telecom will next month list on the Uganda Securities Exchange (USE) a sh30b tranche
By Stephen Ilungole
UGANDA telecom will next month list on the Uganda Securities Exchange (USE) a sh30b tranche. This is part of a sh54b medium term bond note issue.
A tranche is a portion of the entire issue which allows the institution issuer, the liberty not to offer the total amount (sh54b) at once when the final time to list it on the stock market comes up.
The USE and the Capital Market Authority, the stock operators and regulators respectively, approved the listing late last month. This paves the way for secondary trading.
The offer that opened on July 10, closes on July 28, while the allotment of the notes will be done on July 29. Secondary trading starts in August.
USE chief executive officer, Simon Rutega said on Friday, “The notes will be listed and secondary market trading will take place on the USE. USE wishes to take this opportunity to congratulate uganda telecom for this productive initiative,†Rutega said.
The bond will have a maturity period of five years and interest margin of 1.65% per annum above the reference interest rate of the annual discounted rate for the most recent 182-day Treasury bill issued and published by the Bank of Uganda.
uganda telecom managing director, Aimable Mpore said on Friday, the money would mainly be used for expansion of their network.
He said the remaining notes would be issued in two other tranches of denominations that would be determined “on a timely manner.â€
MBEA Brokerage Services (Uganda) Limited, the sponsoring brokers, said the money would also be used to improve and increase capacity on cellular network coverage in rural areas and expand and rehabilitate landline network and subscriber base by installing additional lines necessary to connect new subscribers.
It will also be used to build countrywide data network, finance related civil infrastructure transport and IT facilities and for other corporate business purposes, as well as refinance existing indebtedness.
Standard Chartered Bank Uganda Limited have been appointed the investment advisers and arrangers. The National Social Security Fund are the underwriters, while Sebalu & Lule Advocates, are the legal advisors.
KPMG Uganda Limited will be the auditors and reporting accountants, while Livingstone Registrars (Uganda) Limited are the trustees.
UGANDA telecom will next month list on the Uganda Securities Exchange (USE) a sh30b tranche. This is part of a sh54b medium term bond note issue.
A tranche is a portion of the entire issue which allows the institution issuer, the liberty not to offer the total amount (sh54b) at once when the final time to list it on the stock market comes up.
The USE and the Capital Market Authority, the stock operators and regulators respectively, approved the listing late last month. This paves the way for secondary trading.
The offer that opened on July 10, closes on July 28, while the allotment of the notes will be done on July 29. Secondary trading starts in August.
USE chief executive officer, Simon Rutega said on Friday, “The notes will be listed and secondary market trading will take place on the USE. USE wishes to take this opportunity to congratulate uganda telecom for this productive initiative,†Rutega said.
The bond will have a maturity period of five years and interest margin of 1.65% per annum above the reference interest rate of the annual discounted rate for the most recent 182-day Treasury bill issued and published by the Bank of Uganda.
uganda telecom managing director, Aimable Mpore said on Friday, the money would mainly be used for expansion of their network.
He said the remaining notes would be issued in two other tranches of denominations that would be determined “on a timely manner.â€
MBEA Brokerage Services (Uganda) Limited, the sponsoring brokers, said the money would also be used to improve and increase capacity on cellular network coverage in rural areas and expand and rehabilitate landline network and subscriber base by installing additional lines necessary to connect new subscribers.
It will also be used to build countrywide data network, finance related civil infrastructure transport and IT facilities and for other corporate business purposes, as well as refinance existing indebtedness.
Standard Chartered Bank Uganda Limited have been appointed the investment advisers and arrangers. The National Social Security Fund are the underwriters, while Sebalu & Lule Advocates, are the legal advisors.
KPMG Uganda Limited will be the auditors and reporting accountants, while Livingstone Registrars (Uganda) Limited are the trustees.