Centum, Mi Vida plan asset-backed securities to get long-term funding

By

Julians Amboko

Contributor

Centum Investment Company and Mi Vida Homes are in a race to raise funds from the country’s first real estate asset-backed security in the private sector as the two firms grapple with the pressure of inadequate long-term capital that aligns with the reality of property investments.

An asset-backed security (ABS) refers to a financial instrument that is backed by a pool of income-generating assets, such as rental income from housing units, allowing both institutional and retail players in the capital market to invest and therefore deploy long-term capital into it.