Flame Tree sets sights on corporate bond
Wednesday, July 1, 2020 0:01
By PATRICK ALUSHULA
Flame Tree CEO Heril Bangera.
FILE PHOTO | NMG
Flame Tree Group (FTG) #ticker:FTGH intends to issue a corporate bond to fund growth despite the reduced investor appetite following loss of money in Chase and Imperial bank securities.
The bond plans come on the back of FTG having secured Sh905 million ($8.5 million) credit line from SBM bank to improve working capital and fund growth even as it froze payment on maturing loans in the wake of coronavirus.
Activity in the unsecured corporate bond market in the years leading to 2015 was fairly active until the Chase and Imperial Bank issuances brought a droughtt.
Investors are still seeking recourse on Sh4.82 billion and Sh2 billion Chase and Imperial bonds respectively after the two banks sank into receivership.
