This archive report was first published on 30 June 2021.
On June 30, 2021, Family Bank Limited marked a significant milestone by ringing the bell to commemorate the listing and commencement of trading of its corporate bond at the Nairobi Securities Exchange (NSE).
The Capital Markets Authority gave its approval for the listing of the first tranche of the bank's Medium Term Note under the Fixed Income Market Segment at the NSE, following a successful offer that saw a subscription of 147.3 percent, exceeding the target of Sh3 billion.
Family Bank Chief Executive Officer Rebecca Mbithi expressed her gratitude to investors, stating, “The response that this bond has generated demonstrates the confidence the market has in the Family Bank brand despite constrained liquidity in the money market as evidenced by the tough economic environment due to the COVID-19 pandemic. The capital raised will definitely strengthen our business position and competitiveness as we seek to strengthen our capital base to support future balance sheet growth and onward lending to MSMEs and also anchor our next phase of investments in technology.”
Notably, this is not the first time Family Bank has successfully listed its corporate bond at the NSE. In April 2021, the bank redeemed its five-and-half year Medium Term Notes (MTN) worth KES 2.0188 billion that was issued in 2016 and listed on the NSE.
Speaking during the bell ringing ceremony, NSE Chairman Mr. Kiprono Kittony noted, “This oversubscription of the initial bond demonstrates the confidence investors have in Family Bank and affirms the importance of the corporate bond market as a key source of business financing.”
Geoffrey Odundo, Chief Executive of the NSE, congratulated Family Bank on their tremendous growth over the past few years and welcomed them back to the market, stating, “We are delighted that Family Bank are returning for another listing of their corporate bond. This is an indication of the potential recovery of the corporate bond market and an acknowledgement of the rising investor appetite in our market for debt securities.”
The bank raised Sh4.42 billion from local fund managers, banks, retail investors, insurance companies, and other institutional investors. The Note will bear interest at a fixed annual rate of 13.0% until maturity on December 17, 2026.
