KMRC picks capital markets veteran as new finance chief
A veteran of the capital markets, and former Manager for Corporate Approvals at Capital Markets Authority (CMA) Nyale Yanga, has been appointed Chief Financial Officer by the Kenya Mortgage Refinance Company (KMRC). The move is meant to bolster the mortgage refinance agency’s capital raising skills and networks as it seeks to serve a wider market.
Yanga (pictured) worked at CMA for 16 years before his new job, during which time he managed the compliance of businesses with the regulatory financial requirements prior to approval in his capacity as Manager for Corporate Approvals. Given the 480 per cent over-subscription of the first tranche of its unsecured medium-term note, which drew bids for Sh8.1 billion versus the Sh1.4 billion offering, KMRC’s choice of Yanga as CFO reflects the mortgage refinancer’s intent on follow-on capital raising.
In order to diversify its sources of funding and move away from concessional financing, KMRC will begin issuing debt on the public markets in the beginning of 2022. KMRC had paid out Sh6.9 billion for affordable mortgages as of August 30, 2022. Yanga assumed the role of CFO at KMRC on July 1.
The second tranche of the KMRC’s Sh10.4 billion medium term notes won’t be issued until mid-2023. The firm will be able to better match the funds from the bond programme to its mortgage pipeline thanks to the delayed issue of the second half of the notes, claims KMRC.
“Market timing is crucial, which is why we are talking about the middle of next year. We are issuing bonds that are largely backed by mortgages, KMRC Chief executive Johnson Oltetia said.