FAMILY BANK BOND RECEIVES A SUBSCRIPTION OF 147.3% TO RAISE 4.42 BILLION

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 19^th 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.