Family Bank Limited, a lender with a growing retail customer base with a key focus in SME Banking, has today listed its corporate bond, marking the commencement of its trading at the NSE.
This first tranche of Family Bank Medium Term Note(MTN) has listed under the Fixed Income Market Segment at the NSE.
Family Bank Medium Term Note matures in 2026
This is after a successful offer that raised a total of KSh 4.42 billion against a KSh 3 billion target, marking a subscription of 147.3%. This MTN will bear interest at a fixed annual rate of 13.0% until maturity on December 17, 2026.
Speaking during the bell ringing ceremony, Kiprono Kittony, the NSE Chairman, noted that the oversubscribed bond is an indicator of investors’ confidence in Family Bank and the importance of the corporate bond market for firms wishing to raise capital.
He said the corporate bond market had raised KSh 13.6 Billion over the last two years.
Geoffrey Odundo, Chief Executive Officer of NSE, praised the lender for its strong growth over the past few years and was glad to see the lender back to the bond market. He said another listing to Family Bank Medium Term Note indicated rising investor appetite and steady recovery of the debt securities market.
According to Rebecca Mbithi, Family Bank CEO, the response that this bond has generated shows confidence that the market has in the lender. She said proceeds from the bond would strengthen the lender’s business and competitiveness while boosting its capital to support future balance sheet growth and increase its lending to medium, small and medium-sized enterprises.
The capital will also anchor the Bank’s next phase of investment in technology.
Two months ago, the lender successfully redeemed its five-and-half year (5 and 1⁄2 year) Medium Term Notes (MTN) worth KSh 2.0188 Billion. These Medium Term Notes were issued five years ago and listed at the bourse.
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