NAIROBI, July 20 (Reuters) - Kenyan mobile phone operator, Safaricom, said on Monday it would split a planned bond issue into two, with the first tranche of up to 6 billion shillings ($78 million) to be released by the end of August.
Safaricom has already picked Barclays Capital, Absa Bank and CFC Stanbic to arrange the issue, meant to raise between 8 billion and 12 billion shillings.
"We are looking for market approval for up to 12 billion shillings," said Safaricom's Chief Financial Officer Chris Tiffin.
"The first phase will be released by the end of August and from a market perspective, we will be looking for 5-6 billion shillings in the first phase. The amount depends on market liquidity."
Tiffin said he expected the second phase to be launched in the first quarter of 2010, depending on the market.
The bonds are to raise money for capital expenditure with the company spending 24 billion shillings last year, he said.
The interest rate has not yet been fixed but could incorporate a mix of fixed and floating rates.
"We haven't finalised the rate yet but that will be linked to the tenure," he said.
The tenure of the bonds has also not yet been fixed, though Tiffin said it would be "reasonable".
For information on other corporate bonds expected in the region, click (Reporting by Alison Bevege; Editing by Helen Nyambura-Mwaura and Rupert Winchester)