The bank is planning to use the funds for branch expansion, investment in ICT software, increasing its loan book, strengthening its capital base and to fund regional expansion.
Family Bank Wednesday launched its Sh10 billion bond sale to support its fast-growing loan book.
The lender’s Sh10 billion bond programme will see it raise Sh4 billion in the first issue with an option of accepting an additional Sh2 billion should there be an oversubscription.
The bond, which will be sold in notes of Sh100,000, will be listed on the Nairobi Securities Exchange (NSE) in early November.
The bank is planning to use the funds for branch expansion, investment in ICT software, growing its loan book, strengthening its capital base and to fund regional expansion.
Fast growing
Family Bank, voted the fastest growing lender in the country, posted a 32 per cent increase in profit for the six months ended June to Sh1.14 billion riding on the loan book expansion. The lender did not disclose details of the pricing of the bond.
Family Bank joins other lenders such as Imperial and Chase Bank who have issued bonds this year to support their capital needs.
Imperial Bank, which issued its bond earlier this month, offered a fixed coupon rate of 15 per cent, higher than the return of 13.1 per cent offered by Chase Bank which issued its bond in June.
Chase Bank’s first tranche was oversubscribed, with investors offering the lender Sh4.8 billion against a target of Sh3 billion.
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