Family Bank Raises Ksh 4.42 Billion From Their Bond

Family Bank bond has raised 4.42 billion shillings, marking a subscription of 147.3 percent, against a 3 billion shillings target…

 Family Bank Raises Ksh 4.42 Billion From Their Bond

Family Bank bond has raised 4.42 billion shillings, marking a subscription of 147.3 percent, against a 3 billion shillings target with a greenshoe option of 1 billion shillings in its first tranche of the corporate bond offer via public placement.

The bank was seeking to raise 4 billion shillings, with a minimum subscription of 100,000 shillings or equivalent, with a five and a half years (5 and ½ year) tenure priced at 13.0 percent per annum.

This issuance comes after the Bank successfully redeemed its five and a half years (5 and ½ year) Medium Term Note worth 2.0188 billion shillings on 19th April 2021.

“On behalf of the Board of Directors and the Management at Family Bank, we would like to thank institutional and individual investors who have believed in the Bank and its vision as we seek to increase lending to MSMEs and strengthen our capital base and heavily invest in technology,” said Family Bank Chief Executive Officer Rebecca Mbithi.

The Bank raised 4.42 billion shillings, an oversubscription of 47.3 percent, from local fund managers, banks, retail investors, insurance companies, and other institutional investors.

“We are delighted with the performance of the Family Bank Medium Term Note which is instrumental in reviving our corporate bond market. We have therefore allowed the Bank to take up from the investors the 3 billion shillings that were approved for the first tranche and the extra 1 billion shillings offered by the same pool of investors, which is the greenshoe option,” noted CMA Chief Executive Wyckliffe Shamiah.

The lead transaction advisors are NCBA Investment Bank and Genghis Capital, PricewaterhouseCoopers (PwC)as the reporting accountants, MTC Trust and Corporate Services Limited as the Note Trustees, Mboya Wangong’u & Waiyaki Advocates as the legal advisors, and Tim-Sky Media Services as the Media and Public Relations consultants.

About Post Author

Related News

8 Days to The Stanbic Yetu Festival, 90% Of Tickets Off The Shelf

8 Days to The Stanbic Yetu Festival, 90% Of Tickets Off The Shelf

With only 8 days remaining for the much-awaited and much-hyped Stanbic Yetu Festival, the tickets are…
Make Use Of Family Bank PDQ Machine To Grow Your Business

Make Use Of Family Bank PDQ Machine To Grow Your Business

The use of cash in businesses around the country is declining. Millions of customers are making…
LG Solidifies Market Leadership With 60% OLED TV Market Share

LG Solidifies Market Leadership With 60% OLED TV Market Share

LG Electronics commands 60 percent of the OLED TV market by total shipments as of Q1…