Stanbic Bank Kenya intends to redeem 100% of the Bank’s existing Ksh4 billion Tier II outstanding notes maturing on 8th December 2021. The bond was issued in January 2015.
As per the pricing supplement, the issuer may redeem part or all of the subordinated notes:
- on an interest payment date but no earlier than June 2020
- by giving minimum notice of 30 days
- based on minimum redemption amounts of Ksh 50,000,000 and integral multiples of Ksh 10,000,000 thereof
In this case, Stanbic will redeem 100% of the notes on 8th June 2020 which is an interest payment date.
In March, Stanbic Bank announced a loan repayment break for SMEs and personal banking customers effective 1st of April 2020. The move is meant to cushion them against the economic disruptions caused by the Coronavirus disease (COVID-19). For SMEs, it will run for up to 3 months and will apply to all SME loan facilities.