Family Bank bond has raised KSh 4.42 billion, a subscription of 147.3%, against a target of KSh 3 billion target. The lender has a green shoe option of KSh 1 billion in its first tranche, to be done through public placement.
According to CMA Chief Executive Wyckliffe Shamiah, the successful sale of the Family Bank medium-term note has given a boost to the corporate bond segment. He said the lender take up the KSh 3 Billion that was approved for the first tranche and the extra KSh 1 Billion offered by the same pool of investors, which is the green shoe option.
Family Bank was seeking KSh 4 Billion
Family Bank was seeking to raise KSh 4 billion, with a minimum KSh 100,000 or equivalent subscription, with a five and a half years (5 and ½ year) tenure priced at 13.0% per annum.
This issuance comes after the lender successfully redeemed its five and a half years (5 and ½ year) Medium Term Note worth KSh 2.0188 billion on 19th April 2021.
Family Bank CEO Rebecca Mbithi thanked institutional and individual investors for believing in the Bank and its vision. The lender, she said, will increase lending to micro, small and medium-sized enterprises, boost its capital and increase investments in technology.
The bond attracted interest from local fund managers, banks, retail investors, insurance companies and other institutional investors.
The lead transaction advisors were NCBA Investment Bank and Genghis Capital. At the same time, PwC were the reporting accountants, Tim-Sky Media Services as PR and media consultants and MTC Trust and Corporate Services Limited as the Note Trustees. Mboya Wangong’u and Waiyaki Advocates were the legal advisors.