FAMILY BANK GETS CMA NOD TO RAISE KES 8 BILLION TO ANCHOR ITS GROWTH STRATEGY
By Vera Shawiza
Family Bank has received formal approval from the Capital Markets
Authority to raise up to KES 8 billion in tranches through a multi-
currency Medium Term Note (MTN) by way of public offer to
strengthen its capital base and support lending.
The Bank targets to raise KES 4 billion in its first tranche with the
balance to be raised within the next five years in various
tranches/series.
“We are positioning the Bank for the second phase of growth as per
our 2020 – 2024 strategy anchored on growth and stability of the
bank. Through this capital raising, the Bank is eyeing to strengthen
its capital base to support lending to micro, small and medium-sized
enterprises and heavily invest in technology infrastructure while
diversifying our product and market offerings,” said Family Bank
CEO Rebecca Mbithi.
Profit before tax over the past five financial years grew at
compounded annual growth rates of 21.3% from 2016 to
2020. Interest Income continues to be the Bank’s primary revenue
stream contributing on average 77% of total income, over the past
five years. There has also been an impressive increase in non-
funded income, which has grown by a compounded annual growth
rate of 4.9% over the past five financial years from KES 2.1 billion in
2017 to KES 2.6 billion in 2020. The growth is mainly attributed to a
significant increase in foreign exchange trading income and fees
and commissions on loans and advances. On the balance sheet side,
the Bank has recorded impressive growth in total assets at a
compounded annual growth rate of 6.9%, customer deposit at
13.9%, shareholder funds at 1.3% and loans and advances at
3.1% over the past five financial years during the period 2016 to
2020.
Ms Mbithi also added, “We are confident of the Bank’s upward
trajectory of growth not only backed on our financial strength, our
footprint as Kenya’s fourth largest bank in branch network but also
the competence of the Board, Management and staff coupled with
strong market offering necessary to scale the Bank’s growth’s
ambitions.”
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.
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.
Family Bank prides itself in growing a very strong retail customer
base with a key focus in SME Banking. From only one branch in
1985, the Bank has grown over time and currently enjoys a branch
network of 92 branches, 4,000 bank agents and over 10,000
merchants countrywide. Family Bank was the first bank in Kenya to
introduce paperless banking through smart card technology that
enabled customers to transact without having to fill in deposit or
withdrawal slips.
In 2010, Family Bank was the first bank to
introduce mobile banking in Kenya and in 2016 the first to launch
the mVisa service in Africa. The Bank has received numerous
awards including the Think Business Fastest Growing Bank Award
three years in a row between 2013 and 2015, the Think Business
Best Bank in Micro-Finance Award, 1st Runner-up in 2013 and 2014.
In 2017, the Family Bank was feted as the Best SME Bank in Kenya at
the annual Banker Africa Awards, East Africa – an award initiative
for financial institutions in Africa. In 2021, Family has been voted
best Tier2 bank on customer experience in Kenya. For more
information about Family Bank, please visit www.familybank.co.ke
Leave a Comment
You must be logged in to post a comment.