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The approval paves the way for the bank to raise additional capital to support its strategic growth initiatives/FILE

Kenya

Family Bank gets approval to raise Sh10bn to fund growth

The approval paves the way for the bank to raise additional capital to support its strategic growth initiatives/FILE

The approval paves the way for the bank to raise additional capital to support its strategic growth initiatives/FILE

NAIROBI, Kenya, Sept 23 – Family Bank has received formal approval from the Capital Markets Authority (CMA) to raise up to Sh10 billion through a Senior Unsecured or Subordinated Multicurrency Medium Term Note (MTN) programme.

This transaction will be by way of public offer of debt securities by the Bank.

The approval paves the way for the bank to raise additional capital to support its strategic growth initiatives.

The Notes will be issued in tranches with the first one expected to be launched at the end of this month or the first week of October 2015.

“The bank’s growth momentum and strategic plans needed to be sustained hence the need to raise additional capital. The program has been structured in such a way that the bank can continuously raise funding for the next five years for its strategic initiatives up to the Sh10 billion aggregate limit,” Family Bank Group CEO Peter Munyiri said.

The Bank which has maintained the top perch as the fastest growing bank in Kenya will use the proceeds to strengthen its core capital, improve the banks overall IT infrastructure, to propel the domestic and Regional expansion plans as well as for on lending activities.

The Bank has been on an expansion binge, riding on the emerging business opportunities in the country as it races to grow shareholders’ value and get into the top tier space.

It has opened seven new branches including Migori, Chuka, Utawala, Thika Makongeni, Ruaka, Gateway Mall and Bamburi. Another five more outlets will be rolled out by year end.

Faida Investment Bank and NIC Capital Limited are the appointed joint lead transaction advisors and placing agents for the Offer.

Mboya Wangong’u and Waiyaki Advocates are the legal advisors to the Issue while Deloitte are the reporting accountants and BSD Group are the Marketing and PR consultants for this issue.

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