, NAIROBI, Kenya, Sept 23 – The Capital Markets Authority (CMA) has approved a Rights Issue for NIC Bank Limited seeking to raise money to support the bank’s growth plan to add more branches in Kenya and the region.
The approval allows the commercial lender to issue and list an additional 42,663,040 ordinary shares at a rights issue price to be announced by the company to shareholders of ordinary shares of NIC Bank Limited on the register of its members at the close business on October 2, 2014.
The banks expects to raise Sh2.1 billion in the Rights Issue that will open on October 23 and close on November 17.
While announcing the approval the CMA noted that it has reviewed the disclosures by NIC Bank Limited and is satisfied that all the requirements have been met in accordance with the Fourth Schedule of Capital Markets (Securities) (Public Offers, Listings and Disclosures) 2002.
This is the third Rights Issue for the bank in the last seven years.
In 2007, the bank raised Sh1.1 billion through a Rights Issue that was oversubscribed by 49 percent, followed by a second Rights Issue in 2012 through which a further Sh2.1 billion was raised, recording a 238 percent subscription rate.
Earlier this month the bank has sold its Sh3 billion bond that received offers of Sh6.5 billion leading to the upsize of the bond to Sh5.5 billion.
This was the first tranche under the Sh8 billion Medium Term Note Program.