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MRM has over the years engaged in financial practices that have made it a formidable force in this respect. In 1997, MRM began a commercial paper (CP) program, which was for a long time the only US dollar dominated paper, in the Kenyan money market. MRM went further by successfully floating a bonds issue in October 2002 in the Fixed Income Security Segment of the Nairobi Stock Exchange. With Standard Chartered investment services acting as the firm's financial arranger, and Barclays Bank Ltd. acting as the lead manager, the purpose of the bonds issue was to introduce and familiarize the medium term paper, before ultimately listing the company's shares in the stock exchange. Part of the financing of the CGL line came though a historic financial tie-up of US$11.5million from International Finance Corporation (IFC), and Euro 9.0 from European Investment Bank (EIB). The unique feature of the EIB arrangement was that one third of the interest paid to it, is being invested in a trust fund managed by an independent board, with funds being ploughed back into community development projects for Mariakani town. The amount of subsidy expected to accumulate over a period of nine years is over Kshs 40 million (USD 500,000). MRM was in 2001 rated by Global Rating Company (GRC), South Africa, as A1- for short term debt and A- for long term debt .This rating has since improved to A1 for short term debt and A for long term debt . The short term debt ratings give an indication of payment timelines, liquidity, fundamental and risk factors. Long term debt ratings on the other hand refer to credit quality, resilience to adverse marco environmental conditions and protection factors. MRM has also obtained local recognition for its financial management practices. In 2001 and 2003, the company was awarded the prestigious title of "Best Financial Management Practices", by the Kenya Institute of Management. This is an independent body of professionals that recognizes excellence in various aspects of corporate management. |