@wa_ithaka. you gotta stop with the google thing dude, better to ask those in the profession, but will look into the issues u mentioned. I have a cool dvd someone sent me on banking and economics, if u want to see it email me.

@vvs. when I referred to accounting, I was not referring to capital, I was actually referring to processes of making loans and creating deposits (thus impact on core capital ratio). But you're right these regulations were devised by the BIS long ago in the late 80s.

I'm not aware of the minimum time frame on debt as 'capital' (will look into it). I just read an NIC annual report and Tier 2 capital includes subordinated debt not exceeding 50% of core capital...so KCB will look at raising no more than 11b if it wants to include it as capital, every reason why they should issue it in tranches...so wa_ithaka may have a genuine point (but then again that wasn't the debate).

vvs. You got a source for this. How many companies have issued callable bonds, apart from the former Celtel Kenya? And do you think KCB or banks in general would want to put a call option on their corporate debt, don't see why?

I would have thought it would have been an essential feature of the bond. If it was, it wasn't mentioned (loudly).

Scubidu-tx for the dvd offer. I've picked up most of ma knowledge from bartalk so there might be something in it. Lakini I rarely get time to watch dvds.
Scubidu, vvs. One thing you may need to bear in mind is the fact that the forcoming Basel 3 will almost certainly tighten the definition of capital and this may mean narrowing it down to sharholder capital and retained earnings. Ofcourse, CBK has not even adopted Basel 2 so we have a long way to go...

Wall Street is a classic... Beating the original will be tough... Gordon Gekko... "Greed is GOOD"... great flik!

I dont have the KenGen Bond Prospectus on me but KenGen had the option of retiring part of the bond early on (I think after the initial 2 years)...

Plus the bond was designed to allow KenGen 'retire' a small portion (6.25%) every 6 months after the 1st 2 years... Or something like that...

I don't get the use of Basel 3 if 100% understanding, much less implementation, of Basel 2 is still rocket science in certian pockets in the West. Coming in the wake of the financial crisis in the west it will tighten regulation so much there that bank management will not manage a decent fart without the regulator's say-so that they can let it out slow and easy and exhale. Maybe they need to anchor State bailout in the financial reforms seeing its a reality anyway and its played a pivotal role in restoring sanity in the markets. To confirm finally that varying degrees of capitalism and socialise are err..strange bedfellows than can actually co-exist together happily ever after - remember the USSA (United Socialist States States of America) tag?
http://www.basel-iii-accord.com/

Over 16m traded so far today. Any new happenings at KCB?
Pse share.

@2012, there was a huge buy at 9:31am, price 21.50, volume 15,989,200. My guess is that it was a Kenyan institution that bought

@vvs,that is only 0.7% of issued KCB shares,i dont think it is enough to make it to the top ten holders whose breakdown is usually included in the annual reports,that said KCB has been heavily sold in the last year so there may just be significant changes.

@2012 - No, Warren Buffett makes money after holding the shares for years... after he buys at good/fair prices...

So u need to buy KCB 'cheap' & wait till it takes off...