Family Bank has received approval from the Capital Markets Authority(CMA) to raise KSh 8 billion in tranches through a multi-currency Medium Term Note (MTN).
This cash will be raised by way of public offer to strengthen its capital base and support lending.
The lender targets to raise KSh 4 billion in its first tranche, with the balance within the next five years in various tranches.
Family Bank strategic plan
According to the Family Bank CEO, the lender is raising this cash to push it into the second phase of growth as spelt out in the 2020-24 strategy.
The lender plans to grow its capital and lend to MSMEs, build up its technology platforms, and diversify its products and services.
Family Bank pre-tax before tax over the past five financial years grew at compounded annual growth rates of 21.3% from 2016 to 2020.
Interest Income continues to be the Bank’sBank’s primary revenue stream contributing on average 77% of total income over the past five years.
Family Bank non-funded income has been growing at an annual rate of 4.9% over the past five financial years, from KSh 2.1 billion in 2017 to KSh 2.6 billion in 2020.
The growth is mainly attributed to a significant increase in foreign exchange trading income and fees and commissions on loans and advances.
On the balance sheet side, the BankBank has recorded impressive growth in total assets at a compounded annual growth rate of 6.9%, customer deposit at 13.9%, shareholder funds at 1.3% and loans and advances at 3.1% over the past five financial years during the period 2016 to 2020.
Ms Mbithi added, “We are confident of the Bank’s upward trajectory of growth not only backed on our financial strength, our footprint as Kenya’s fourth largest bank in branch network but also the competence of the Board, Management and staff coupled with strong market offering necessary to scale the Bank’s growth’s ambitions.”
The lead transaction advisors are NCBA Investment Bank and Genghis Capital, PricewaterhouseCoopers (PwC)as the reporting accountants, MTC Trust and Corporate Services Limited as the Note Trustees, Mboya Wangong’u & Waiyaki Advocates as the legal advisors and Tim-Sky Media Services as the Media and Public Relations consultants.
This issuance comes after the Bank successfully redeemed its five and a half years (5 and ½ year) Medium Term Note worth KSh 2.0188 billion on 19th April 2021.
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