Britak directors granted Sh118 million in loans

Posted on July 21, 2011


British American Investments Company Kenya Ltd opened up its share offers on July 12 2011. The company is seeking to raise Sh5.85 billion through the IPO at Sh9 per share. Interested members of the public can buy a piece of this company at a minimum of Sh18,000 (2000 shares)

Consequently, the firm released prospectus disclosing information about the company as required by the Capital Markets Authority. The prospectus is ideally supposed to open up the company to the public (promote transparency) and help them understand the firm they want to invest in.

However, Bizextras while going through the 220 page book has bumped on some information that we thought would be interesting to readers,-Loans granted to directors (Page 93 of the prospectus)

Read on….

Total loans granted to executive directors and non executive directors of Britak amount to Sh118 million. According to the firms IPO prospectus, these consisted of Sh114 million in mortgage loans and Sh3 million in car loans.

The mortgage loans are secured by registered charges against the financed property, while the car loans are secured by log books held jointly with insurance company.

Among the directors of the company, Mr Stephen Wandera has a loan balance of Sh25.9 million in mortgage and Mr Benson Wairegi Sh1.1 million. However, the other directors through holding companies also have loans with the firm.

These includes Mr Wairegi through Microland Investments who has Sh7.2 million, Mr Peter Munga through St. Paul Thomas Academy Sh56.7 million and Njamu Ltd Sh23 million.

The loans have a repayment period of between 9 and 15 years with an eight per cent interest rate per annum. The prospectus further indicate that of these loans, non of the directors have accrued any arrears.

Only two of the directors have car loans Mr Wandera Sh1.4 million with a repayment period of 34 months and Mr Dominic Kiarie Sh2.5 million with a repayment period of 48 months.

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