Thailand Overseas Investment Center

Kenya: Kestrel Capital Licensed As Investment Bank

By Kennedy Kangethe

Nairobi — The Capital Markets Authority (CMA) has granted a license to Kestrel Capital (East Africa) Limited, to operate as an investment bank under the Capital Markets Act and Regulations.

Kestrel Capital Limited will offer advisory services on public offering of securities, corporate financial restructuring, takeovers, mergers, acquisitions and privatization, corporate financing options including issuance of equity or debt securities or loan syndication.

The bank will also offer advisory services on promoting or arranging or issuance of securities and providing investment advisory services.

This follows an increase in issued and paid up share capital from Sh100 million to Sh250 million by the previously licensed stockbroker.

In addition to increasing share capital, the newly licensed investment bank has been in compliance with all relevant statutory requirements.

The approval brings the number of Investment Banks authorized by the Capital Markets Authority to 14.

An investment bank is a non-deposit taking institution licensed by the authority to advise on offers of securities to the public or a section of the public, take-overs, mergers and acquisitions.

The bank also offers advice on corporate restructuring involving companies listed or quoted on a securities exchange, privatisation of companies through a securities exchange or underwriting of securities issued or to be issued to the public, and to engage in the business of a stockbroker or dealer.

Kestrel Capital was Kenya's top stockbrokerage firm by earning the highest commission income in 2013, helped by its dominant share of foreign investors' trading desk.

Annual trade data indicated that Kestrel Capital grew its market share to 20 percent last year up from 14.6 percent in 2012, as the total value of equities traded by the firm more than doubled to Sh62.3 billion.

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