The first tranche of Sh4 billion is expected to become a public barometer of the company’s performance as it expands the local footprint while eyeing regional opportunities/FILE
This is the first time that the bank has tapped the public for cash to bolster its lending activities as well as fuel its aggressive expansion driven by a strong desire to become a home grown regional powerhouse in the banking sector.
The first tranche of Sh4 billion is expected to become a public barometer of the company’s performance as it expands the local footprint while eyeing regional opportunities.
“The bank’s bond unlike previous ones floated in the past came at a time when the financial sector was going through a very turbulent time arising from difficulties experienced by Imperial Bank and liquidation of Dubai Bank both within a period of two months,” Chairman Wilfred Kiboro noted.
As part of the capital raising strategy the bank had decided to cap the local component to Sh2 billion while the balance of Sh2 billion of the first tranche would be targeting dollar investors.
The bond which was on sale for 10 working days closed on October 21, 2015. The medium term note which is by way of a public offer of debt securities has been structured in such a way that the bank can continuously raise funds for the next five years for its strategic initiatives.
The bank will direct the bond proceeds to create capacity for investment in areas of high growth potential, bolster its capital base, improve the banks overall IT infrastructure, assert its local presence whilst pursuing regional opportunities as well as lending activities.
The bank is 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 four more outlets will be rolled out in two weeks’ time.
