NAIROBI: FAMILY Bank yesterday listed a Sh4 billion bond at the Nairobi Securities Exchange, which is part of the Sh10 billion medium term note approved by the Capital Markets Authority last month
Chairman Wilfred Kiboro said the first tranche has a special provision for an extra to Sh2 billion and investors would get returns at a fixed interest rate of 13.75 per cent while the bond would mature in 2021.
He said Sh1 billion of the proceeds will be used to finance the entry into regional markets, Sh4 billion to fund business growth including lending activities, Sh500 million for investment in ICT software and infrastructure upgrade and Sh500 million for branch network expansion and alternate business channels.
“In 2014, Family Bank turned to its shareholders to raise Sh3 billion through a rights issue to fund growth and other strategic initiatives. This time round we cast our net wide and far to bring on board new investors through our bond,” he said at the launch of the bond in Nairobi. He said the minimum investment starts from Sh100,000 and the bond will close sale on October 21.
Managing director Peter Munyiri said Faida Investment Bank and NIC Capital are the appointed joint lead transaction advisors and placing agents for the offer.
He said the funds will help the bank to undertake larger and more complex development projects in the country. “We are positioning the bank to play its rightful role in the achievement of the Vision 2030 whilst fulfilling the financial needs for our customers,” he said.
