This archive report was first published on 30 June 2021.
On June 30, 2021, Family Bank Limited, a lender with a growing retail customer base and a key focus in SME Banking, marked a significant milestone in its financial journey by listing its corporate bond at the Nairobi Securities Exchange (NSE).
The bond, a Family Bank Medium Term Note (MTN), has been listed under the Fixed Income Market Segment at the NSE and is set to mature in 2026. The successful offer raised a total of KSh 4.42 billion against a KSh 3 billion target, indicating a subscription of 147.3%.
Speaking during the bell ringing ceremony, Kiprono Kittony, the NSE Chairman, noted that the oversubscribed bond is an indicator of investors' confidence in Family Bank and the importance of the corporate bond market for firms wishing to raise capital.
Geoffrey Odundo, Chief Executive Officer of NSE, praised the lender for its strong growth over the past few years and expressed his delight at seeing the lender back in the bond market. He noted that another listing to Family Bank Medium Term Note indicated rising investor appetite and a steady recovery of the debt securities market.
According to Rebecca Mbithi, Family Bank CEO, the response generated by the bond shows confidence that the market has in the lender. She stated that proceeds from the bond would strengthen the lender's business and competitiveness while boosting its capital to support future balance sheet growth and increase its lending to medium, small and medium-sized enterprises.
