This archive report was first published on 27 June 2021.
On June 27, 2021, Family Bank successfully issued a medium-term note, raising KSh 4.42 billion, a significant 147.3% subscription against its target of KSh 3 billion. The lender also exercised its green shoe option of KSh 1 billion, which was offered through public placement.
According to Wyckliffe Shamiah, Chief Executive of the Capital Markets Authority (CMA), the successful sale of the Family Bank bond has given a boost to the corporate bond segment. He noted that the lender took up the KSh 3 billion approved for the first tranche and the additional KSh 1 billion offered by the same pool of investors, which is the green shoe option.
Family Bank had initially sought to raise KSh 4 billion, with a minimum subscription of KSh 100,000 or its equivalent, and a five and a half years tenure priced at 13.0% per annum. This issuance comes after the lender successfully redeemed its five and a half years Medium Term Note worth KSh 2.0188 billion on April 19, 2021.
Family Bank CEO Rebecca Mbithi expressed gratitude to institutional and individual investors for their trust in the bank and its vision. The lender plans to increase lending to micro, small and medium-sized enterprises, boost its capital, and invest 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, while PwC served as 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.
