16 December 2016
Dry Associates have arranged and placed KES 442 million in the first tranche of a KES 1.8 billion 5-year private note program for GardaWorld (Kenya) Ltd.
GardaWorld (Kenya) Ltd is a subsidiary of GardaWorld Security Corporation, the world’s largest privately owned security company.GardaWorld (Kenya) recently acquired 100% of Nairobi-based Kenya Kazi Ltd (“KK Security”).These 5-year notes will be used to retire KK Security’s short term commercial paper program and overdraft facilities, among other forms of financing.
Kaplan & Stratton provided the legal counsel and PricewaterhouseCoopers acted as the reporting accountant for this private issue.Image Registrars Ltd and Ropat Trustee Company Ltd are the registrars and trustees, respectively.
These 5-year notes have been credit rated BBB by the Global Credit Ratings Company (GCR) and carry a 15% KES coupon and a 6.5% USD coupon.
The second tranche of 5-year notes will be issued in mid-June 2017.
Dry Associates investment advisory team did remarkably well in the recently sat examination, International Introduction to Securities and Investments (Kenya) offered by the Chartered Institute of Securities and Investment. There were 13 candidates and all 13 passed the exam on the first sitting. In fact, our General Manager was 1 point short of scoring 100% (59/60); just beating the Managing Director who scored 58/60. In order to acknowledge these excellent results, we had a well attended in-house party on 19th October.
This market certification is an initiative by the Capital Markets Authority (CMA) to ensure that investment advisors have the right knowledge required to advise investors on how to manage their assets. Stage two of the certification will be another examination, “Regulation and Market Practice”, which will have to be sat before August 21st 2017.
In light of the excellent results, investors can rest assured that Dry Associates offers the best investment advice in the market place. We look forward to assisting you manage your portfolio, either at the individual or corporate-level, please book an appointment with us today.
In June 2016, Multiple Hauliers E.A. Ltd partnered with Dry Associates to bring to the market a KES 2 Billion commercial paper program. The principal amount placed in this program is guaranteed up to 80% by Cannon Assurance.
Multiple Hauliers E.A. Ltd was formally established in 1982, with the aim of being the main provider to the service haulage industry of East Africa. Today, the company has built a reputable brand and is undoubtedly one of the largest private transport and logistics services company in East Africa. The company transports goods for some of the largest companies in the region, such as Bamburi, Tata, ARM Cement and Shell, covering nearly 62 million miles annually.With the Multiple Hauliers E.A. Ltd partnership, Dry Associates continues its tradition of allowing investors to participate in the growth of the private sector in East Africa while developing the domestic capital market. Currently, Dry Associates has several commercial paper programs running with companies in diverse sectors such as mining, security and retail. As this commercial paper program is a private issue program, it is restricted to institutional investors and Qualified Investors. For more information, please contact us at Dry Associates.
In February 2016, RMA Motors (Kenya) Ltd partnered with Dry Associates to launch a USD 6 Million commercial paper program. The program is guaranteed by Clipper Holdings, the parent company of RMA Motors (Kenya) Ltd.
RMA Motors (Kenya) Ltd was established in 2013, with headquarters in Nairobi, and specializes in automobiles, both passenger and commercial vehicles. More specifically, RMA Kenya is the authorized dealer for Jaguar Land Rover and offers sales, service and spare parts for these vehicles. In July 2016, RMA Motors (Kenya) Ltd launched its first sports utility vehicle (SUV) in Kenya, the Jaguar F-Pace, at an exclusive event held at its headquarters. At the well-attended event, the Jaguars were driven down a catwalk to the tune of Kenyan and Indian music; with guests having an opportunity to assess the Jaguars at close hand (see photo below).
With the RMA Motors (Kenya) Ltd partnership, Dry Associates has added a top-range company within the automobile sector to its range of companies for which it has commercial paper programs. To learn more about investing in this or other commercial paper programs, please contact us at Dry Associates. We look forward to developing your investment portfolio through investments in some of the best-known companies in Kenya and the region.
12th January 2016
In November 2015, Nakumatt Holdings Ltd (“Nakumatt”) partnered with Dry Associates to launch a tranched KES 2 Billion 2-Year Private Medium Term Note with a Green Shoe option of up to KES 500 Million.
Nakumatt is East Africa’s leading retailer with stores from Kenya to Rwanda that provide customers with a wide selection of international and local products – keeping in line with its slogan of “all under one roof”. So far, Nakumatt offers over 200,000 products to over 250,000 customers daily through more than 50 outlets all across Eastern Africa.
The application for the first tranche of KES 500 Million with a Green Shoe option of up to KES 100 Million opened on 12th November 2015 and closed on 9th December 2015. This first tranche was fully subscribed, continuing Dry Associates excellent tradition of managing to raise large amounts of finance for corporations in Kenya. To date, Dry Associates has raised finance for over 21 companies operating in diverse sectors such as mining, automobile, retail, security, microfinance, hotels and banking.
26th October 2015
Dry Associates third quarter 2015 unaudited financial results (Jan – Sep 2015) show turnover of KES 204 million versus KEC 189 million for the same period in 2014 representing a 58% increase.
The company’s financial results reflect an increase in turnover in every revenue category including offshore funds, pension funds, and most impressively brokerage fees for placement of fixed income securities. The increase in placement fees for fixed income securities can be attributed to some extent to the very favorable interest rates on offer in Kenya during the 3rd quarter.
Interest rates have risen over the past several months in response to the Central Bank of Kenya’s tightening money policy. This tightening is in response to a 15% depreciation of the Kenya Shilling to the US Dollar over the prior year. This depreciation also comes in the wake of a widening Government of Kenya domestic budget deficit. Consequently, the presence of the GOK in competition for funds with the private sector combined with the need to prop up the Kenya shilling exchange rate has resulted in the average 91-day Treasury bill yield rising to 22% per annum. Based on historical interest rates, these rates are attractive to investors resulting in increased take up of fixed income securities by Dry Associates clients.
The Company’s 3rd quarter 2015 after tax profit is KES 64.5 million versus KES 34.3 million for the same period in 2014 representing an 88% increase.
14th October 2015
In August 2015, Dry Associates Ltd arranged and placed a 500 Million Short-Term Note for ASL Limited, part of the RAMCO Group of Companies.
ASL Limited, formerly known as Associated Steel Limited, was incorporated in 1976 and comprises of 4 divisions: Trading, Steel, Heavy Fabrication and Wire & Cables. The Trading Division is the largest building materials supplier in East Africa; while, the Steel Division holds one of the largest stocks of stainless steel in Kenya. The Heavy Fabrication Division provides industrial-scale stainless steel to a number of sectors; and the Wire & Cables Division manufactures cables for homes, factories and offices.
With this most recent private offering, Dry Associates Ltd continues the tradition of being the most active arranger and placer of commercial paper in Eastern Africa. To date, Dry Associates has issued commercial paper for over 21 companies operating in diverse sectors such as mining, automobile, retail, security, microfinance, hotels and banking. For more information on our current commercial paper offerings or to discuss arranging commercial paper for your company, please do not hesitate to contact us at Dry Associates Ltd.
17th September 2015
On September 4, 2015, Dry Associates Limited reached another milestone, obtaining approval for the registration of Unit Trusts with the Capital Markets Authority (CMA) of Kenya!
Unit Trusts are collective financial funds that allow the public to pool their money in a single fund, thus spreading their risk across a range of investments, getting the benefit of professional fund management and reducing their dealing costs.
Dry Associates Limited will offer 3 different Unit Trusts; namely, the Dry Associates Money Market Fund (denominated in Kenya Shillings), Dry Associates Money Market Fund (denominated in US Dollars) and Dry Associates Balanced Fund (denominated in Kenya Shillings). The emphasis of the Money Market Funds will be on safety and high income; the emphasis of the Balanced Fund will be on capital appreciation. The geographical location of these funds will primarily be Kenya and the East African community.
With over 20 years of investment management experience, these Unit Trusts managed by Dry Associates will offer highly competitive market returns. Dry Associates looks forward to bringing these new products to market.
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