NAIROBI, Kenya, Jun 24- Family Bank bond has raised Sh4.42 billion, marking a subscription of 147.3 percent, against a Sh3 billion target with a greenshoe option of Sh1 billion in its first tranche of the corporate bond offer via private placement.
The bank was seeking to raise Sh4 billion, with a minimum subscription of Sh100,000 or equivalent, with five and a half years (5 and ½ year) tenure priced at 13 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 Sh2.0188 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 as we heavily invest in technology,” said Family Bank Chief Executive Officer Rebecca Mbithi.
The Bank raised Sh4.42 billion, an oversubscription by 47.3perent, 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.