FAMILY BANK BOND RECEIVES A SUBSCRIPTION OF 147.3% TO RAISE KES 4.42 BILLION
By Beverlyn Naliaka
Family Bank bond has raised KES 4.42 billion, marking a
subscription of 147.3%, against a KES 3 billion target with a
greenshoe option of KES 1 billion in its first tranche of the corporate
bond offer via public placement.
The bank was seeking to raise KES 4 billion, with a minimum
subscription of KES 100,000 or equivalent, with a five and a half
years (5 and ½ year) tenure priced at 13.0% per annum. This
issuance comes after the Bank successfully redeemed its five and a
half years (5 and ½ year) Medium Term Note worth KES 2.0188
billion 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 KES 4.42 billion, an oversubscription by 47.3%,
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 KES 3 billion that was approved for the first
tranche and the extra KES1 billion offered by the same pool of
investors, which is the green shoe 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.
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