Family Bank limited Wednesday listed its corporate bond on the Nairobi Securities Exchange aimed at raising more capital to implement its 2020 – 2024 strategic plan and growth plans.
The lender’s first tranche of its Medium Term Note under the Fixed Income Market Segment at the NSE raised KSh4.42 billion against a KSh3 billion target, marking a subscription of 147.3 per cent.
“The capital raised will definitely strengthen our business position and competitiveness as we seek to strengthen our capital base to support future balance sheet growth and onward lending to MSMEs and also anchor our next phase of investments in technology,” said Family Bank Chief Executive Officer Rebecca Mbithi during the listing.
The Bank raised Ksh 4.42 billion from local fund managers, banks, retail investors, insurance companies and other institutional investors.
The Note will bear interest at a fixed annual rate of 13.0 per cent until maturity on December 17, 2026.
In April 2021, the Bank successfully redeemed its five-and-half year (5 and 1⁄2 year) Medium Term Notes (MTN) worth Ksh 2.0188 billion that was issued in 2016 and listed on the NSE.
Speaking during the bell-ringing ceremony at the NSE trading floor, Mr. Kiprono Kittony, the NSE Chairman noted, “The success of this bond supplements the growth of NSE’s corporate bond market that has witnessed a total capital raise of KSh13.6 billion in the last two years.”