This archive report was first published on 25 June 2021.
On June 24, Family Bank successfully raised Sh4.42 billion through its corporate bond offer, marking a subscription of 147.3 percent against a Sh3 billion target with a greenshoe option of Sh1 billion in its first tranche.
The bank had initially sought to raise Sh4 billion, with a minimum subscription of Sh100,000 or equivalent, for a five and a half years tenure priced at 13 percent per annum.
This issuance comes after Family Bank redeemed its five and a half years Medium Term Note worth Sh2.0188 billion on April 19, 2021.
Family Bank Chief Executive Officer Rebecca Mbithi expressed gratitude to institutional and individual investors who believed in the bank's vision, stating, 'On behalf of the Board of Directors and the Management at Family Bank, we would like to thank institutional and individual investors who have believed in the Bank and its vision as we seek to increase lending to MSMEs and strengthen our capital base as we heavily invest in technology.'
The bank received subscriptions from local fund managers, banks, retail investors, insurance companies, and other institutional investors, resulting in an oversubscription of 47.3 percent.
CMA Chief Executive Wyckliffe Shamiah noted, 'We are delighted with the performance of the Family Bank Medium Term Note which is instrumental in reviving our corporate bond market.'
The lead transaction advisors were NCBA Investment Bank and Genghis Capital, with PricewaterhouseCoopers 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.
