Family Bank’s first Sh4bn tranche of Sh10bn bond goes on sale

Family Bank's banking hall. Family Bank’s first Sh4 billion tranche of Sh10 billion shilling bond went on sale Monday as the bank looks to raise money to support lending and market diversification. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• The bank’s Managing Director Mr Peter Munyiri said the bond which will be up for sale for ten working days till October 21, will allow it to raise funding for the next five years up to the projected Sh10 billion.
• Family Bank's feasibility studies show it has a keen interest on regional presence including in the Democratic Republic of Congo, Tanzania, South Sudan, Uganda, Ethiopia and Rwanda.
• Family Bank chairman Mr Wilfred Kiboro said the bond will enable the bank consolidate its capital position.

By BRIAN NGUGI
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Family Bank’s first Sh4 billion tranche of Sh10 billion shilling bond went on sale Monday as the bank looks to raise money to support lending and market diversification.

The bank’s Managing Director Mr Peter Munyiri said the bond which will be up for sale for ten working days till October 21, will allow it to raise funding for the next five years up to the projected Sh10 billion.

“We will use the proceeds to strengthen the bank’s core capital, improve the bank’s overall IT infrastructure as well as to propel the domestic and regional expansion plans,” said Mr Munyiri as the bank announced the start of the sale.

REGIONAL PRESENCE

Family Bank's feasibility studies show it has a keen interest on regional presence including in the Democratic Republic of Congo, Tanzania, South Sudan, Uganda, Ethiopia and Rwanda.

Last year, Family Bank which is ranked fifth in Kenya in terms of branch network turned to its shareholders to raise Sh3 billion through a rights issue to fund growth.

The bond will be listed on the secondary market on the Nairobi Securities Exchange (NSE) for trading.

“This will allow those investors who may not be able to get in on the ground floor to invest with us,” Mr Munyiri said.

MARKET SHARE

Family Bank chairman Mr Wilfred Kiboro said the bond will enable the bank consolidate its capital position.

“As we continue to grow our market share, we seek to play in a bigger arena…we yearn to extend our presence to this growing markets and become even more relevant to our clients who trade across borders,” said Mr Kiboro.

Mr Kiboro added: “Partly this is what the proceeds from the bond will enable us to do. We also intend to invest heavily in our IT infrastructure and in coming up with new and innovative ways of not just responding to but also pro-actively responding to our customer needs.”

The bank received formal approval from the Capital Markets Authority to issue its Sh10 billion medium term note last month.

Faida Investment Bank and NIC Capital are the appointed joint lead transaction advisors.

The bank which has 87 branches is eying the opening of ten more branches this year across the country.