294 ViewsLord Popat, Prime Minister’s Trade, Envoy to Uganda and Rwanda Uganda should take advantage…
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Requirements
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Offer document
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The issuer should submit to CMA a prospectus or information memorandum which complies with all the requirements for issue of securities under the Capital Markets (prospectus Requirements) Regulation 1996 as amended, and on approval, publish the said a prospectus or information memorandum
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Minimum paid up share capital and reserves
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Ugx 1 billion (it shall be maintained at that level during the period the commercial paper remains outstanding
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Profitability
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Profits in 2 of the last 3 years
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Total indebtedness including new issue
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Minimum 400% of net worth or gearing ratio of 4:1
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Weighted average of funds from operations to total debt
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40% of the three accounting periods preceding the value
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Minimum size of issue
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Ugx 500 million
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Minimum size of lots
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Ugx 100,000
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Accountants report covering the last 3 financial years
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Disclose the following:
– Earnings before interest and tax (EBIT) interest cover
– Funds from operation to total debt (%)
– Free cash flow to total short term obligations
– Net profit margin
– Post tax return before financing on capital employed
– Long term debt to capital employed ration
– Total debt to equity ration
– Any other information that CMA may deem necessary
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Cash flow projection
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For the next 12 months
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Continuous disclosure
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– Issuer should disclose to CMA any information that affects its credit worth.
– Half yearly mandated and annual audited financial statements during the period of the bond to be submitted to CMA and published in a local daily newspaper with national circulation.
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Guaranteed bonds
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Guarantor should submit to CMA
A no objection from Bank of Uganda where guarantor is a financial institution
A no objection from the Uganda Insurance Commission where guarantor is an insurance company
Financial capability statement certified by the issuers auditors
Financial capability report from credible credit rating agency where guarantors is a foreign company
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Public announcement
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Issuer to make a public announcement in electronic and print media with nationwide circulation at least one week before the issue opens
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Appointment of advisors
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Issuer should appoint:
– Advisors for the issue
– Placing agents
– Receiving bank
– Payment and settlement agents
– Approved registrar
– trustee
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Fees
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0.1% of the issue fee prescribed in the CMA (prospectus
Requirements) Regulations 1996 as amended.
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Fund management;
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Investment Advisors and Asset Managers to mobilizes capital (savings) for the market;
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Discount houses for making a market and securities thereby developing a secondary market for those securities;
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Underwriting of securities;
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Establishing of Investment banks;
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Operating of Collective Investment Schemes.