Family Bank
Family Bank CEO Rebecca Mbithi.

The Capital Markets Authority has given Family Bank the approval to take up a green shoe option of Kes 1 billion after the first tranche of its multicurrency bond was oversubscribed by 47.3 per cent.

Family Bank bond has raised Kes 4.42 billion, against a target of Kes 3 billion.

In early June, the CMA gave the lender the greenlight to issue Kes 8 billion multicurrency Medium Term Note (MTN) programme in tranches.

The first tranche comprising Kes3 billion with an approved green shoe option of Kes 1 billion was issued on June 8.

It was oversubscribed, netting Kes 4.42 billion from local fund managers, banks, retail investors, insurance companies and other institutional investors.

Read also: Family Bank swings to 26 per cent profit growth in pandemic year

“This morning, we are delighted with the performance of the Family Bank Medium Term Note which is instrumental in reviving our corporate bond market. We have therefore allowed the bank to take up from the investors the Kes 3 billion that was approved for the first tranche and the extra Kes 1 billion offered by the same pool of investors, which is the green shoe option,” CMA Chief Executive Wyckliffe Shamiah said.

“We would like to thank institutional and individual investors who have believed in the bank and its vision as we seek to increase lending to MSMEs and strengthen our capital base as we heavily invest in technology,” said Family Bank CEO Rebecca Mbithi.

The funds raised from the bond are expected to be used to strengthen the bank’s capital base to support growth, investment in IT infrastructure, new product initiatives and onward lending.

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