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EABL Commercial Paper
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Ericsson
#1 Posted : Thursday, January 23, 2014 3:11:15 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,702
Location: NAIROBI
In the newspaper today EABL has placed a notice of intention to issue a Commercial paper worth ksh.5.4 billion with a tenor of between 7 and 365 days.
Minimum investible amount is ksh.1 million.

Is the company having cash flow issues or what is the purpose of the money?
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#2 Posted : Thursday, January 23, 2014 11:04:39 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
Ericsson wrote:
In the newspaper today EABL has placed a notice of intention to issue a Commercial paper worth ksh.5.4 billion with a tenor of between 7 and 365 days.
Minimum investible amount is ksh.1 million.

Is the company having cash flow issues or what is the purpose of the money?
Firms borrow money for various reasons. I believe EABL wants to replace pricier bank loans with cheaper funds from investors. It helps EABL [source cheaper funds] and Investors [get better rates vs banks or TBs]
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Kausha
#3 Posted : Friday, January 24, 2014 6:17:45 AM
Rank: Member


Joined: 2/8/2007
Posts: 808
VituVingiSana wrote:
Ericsson wrote:
In the newspaper today EABL has placed a notice of intention to issue a Commercial paper worth ksh.5.4 billion with a tenor of between 7 and 365 days.
Minimum investible amount is ksh.1 million.

Is the company having cash flow issues or what is the purpose of the money?
Firms borrow money for various reasons. I believe EABL wants to replace pricier bank loans with cheaper funds from investors. It helps EABL [source cheaper funds] and Investors [get better rates vs banks or TBs]


@VVS we can't run away from the reality of the challenged capital structure of EABL, largely from dalliances with SABMiller. I strongly believe SABMiller took EABL shareholders to the cleaners especially minorities. It doesn't help that Diageo will not be kind to the minorities either....Roll on the rights issue and twist the knife into minorities backs Diageo! won't you now!
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VituVingiSana
#4 Posted : Friday, January 24, 2014 9:51:13 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,124
Location: Nairobi
Kausha wrote:
VituVingiSana wrote:
Ericsson wrote:
In the newspaper today EABL has placed a notice of intention to issue a Commercial paper worth ksh.5.4 billion with a tenor of between 7 and 365 days.
Minimum investible amount is ksh.1 million.

Is the company having cash flow issues or what is the purpose of the money?
Firms borrow money for various reasons. I believe EABL wants to replace pricier bank loans with cheaper funds from investors. It helps EABL [source cheaper funds] and Investors [get better rates vs banks or TBs]


@VVS we can't run away from the reality of the challenged capital structure of EABL, largely from dalliances with SABMiller. I strongly believe SABMiller took EABL shareholders to the cleaners especially minorities. It doesn't help that Diageo will not be kind to the minorities either....Roll on the rights issue and twist the knife into minorities backs Diageo! won't you now!
The sale of TBL shares at a discount vs the purchase of KBL at full price was a bad move and I critiqued it then. That is now history. The question is what to do with the current ST Loans? Replace them with cheaper CP.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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