NAIROBI, Kenya, Apr 25 – Family Bank is seeking long term financing to boost its growth strategy to see it become a tier one bank in the next three years.
Speaking to journalists on Friday after the bank’s Annual General Meeting, the chairman Wilfred Kiboro said they are looking for various debt financiers that include Africa Development Bank (AfDB), International Finance Corporation (IFC), as well as a Rights Issue to its shareholders.
Kiboro said the company is in talks with AfDB about a loan of Sh3 billion which will be ready in six months time with also negotiations with IFC for both debt and equity financing.
“During the year 2013 the bank signed a Sh2 billion debt financing agreement with the European Investment Bank and we have started drawing part of the money in 2014, in the course of the year we are likely to do another cash call to support growth,” he said.
Kiboro says the funding will be used for its expansion strategies as it seeks to open 10 more branches this year as well as to increase its loan book portfolio.
“In the East African region we are still measuring the market to see its potential and until we find it right then we shall venture into the region, we had planned to invest in South Sudan, thank God we did not,” he said.
The bank hopes to have a Rights Issue towards the end of the year.
The bank recorded 106 percent growth in its pre-tax profit for the first quarter of 2014 to Sh641 million compared to Sh311 million in a similar period last year.
In its 2013 full year results the bank posted a 108 percent increase it its pre-tax profit to Sh1.79 billion from Sh868 million recorded in 2012.
