The shareholders of Kenya’s Family on Friday approved a cash call targeting to raise Ksh 4 billion($40 million) in June to fund its expansion plans across East Africa. The bank says they are in talks with different institutional investors to raise cash through a mix of debt and equity. The African Development Bank is among partners the lender is in talks with for financing, Kiboro said in Family Bank’s annual report.
Read; Family Bank on 21st April received Ksh 3.4B from EIB to boost SME Loan Book
During the AGM, the bank’s Chairman Wilfred Kiboro said that board had picked a new CEO to replace MD Peter Munyiri whose term expires in June, however, they were waiting for Central Bank’s approval in order to proceed with the appointment.
“The board has actually picked a CEO to succeed outgoing boss Peter Munyiri and we are just seeking approval from the Central Bank of Kenya.We expect a smooth handover. The transition is being handled very well,” said Mr Kiboro.
The shareholders also approved changing the lender’s name from Family Bank Limited to Family Group Plc as a holding company for its different segments.
The bank posted a Sh1.98 billion full-year net profit in the period ended December 2015.Currently, Family Bank has 1.7 million customers and assets totaling Ksh 81.2 billion shillings. The lender currently has 91 branches.
Shares of Family Bank have been trading on the OTC (Over The Counter) market and have shed almost 42% YTD. On Listing at the Nairobi Securities Exchange, Family Bank says its not ready to enter the market and will only do so “when the market is right,” he said.
