NIC Bank Managing Director John Gachora says the money will support the banks growth plan in adding more branches in Kenya and the region.
Gachora says the money will also go towards strengthening the capital base to support growth in their loan book for Small and Medium Enterprises (SMEs) and corporate segments.
He says institutional investors received 90 percent of the issue while the remaining 10 percent went to retail investors.
The bond received offers of Sh6.5 billion from the original target Sh3 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.
The bond issue is part of a major capital-raising program initiated by NIC Bank as it seeks to grow both in Kenya and the region.
The company is also seeking to raise Sh2 billion in a rights issue subject to regulatory approval.
On his part, NIC Bank Chairman James Ndegwa said the bank has decided to go for a combination of debt and equity as the most optimal option to finance business growth.
NSE outgoing Chief Executive Officer Peter Mwangi said they shall continue to deepen the Bond Market through innovations.
“The NSE is currently in the process of introducing a new bond trading system which will allow reporting of bond prices by yield and support trading of bonds denominated in different currencies including the Government of Kenya Sovereign Bond,” he said.