Family Bank chairman Wilfred Kiboro (left) with the bank's managing director, Peter Munyiri. High interest rates and uncertainties after the closure of Imperial Bank have forced Family bank to cap its initial bond offer by half to Sh2 billion. PHOTO | FILE | NATION MEDIA GROUP
Family Bank Chairman Wilfred Kiboro said the receivership of Imperial bank had a negative impact in raising funds since banks are interlinked.
Fixed income investors have Sh2 billion bond stuck in Imperial bank which was supposed to go live on the Nairobi Securities Exchange the day it was placed under receivership.
High interest rates and uncertainties after the closure of Imperial Bank have forced Family Bank to cap its initial bond offer by half to Sh2 billion.
The bank had made a Sh4 billion offer to investors in the first tranche of its Sh10 billion bond but turmoil in the market hurt subscription.
Family Bank managing director Peter Munyiri said despite the challenges, the issue has been a success underscoring the confidence in the bank.
“We are delighted that despite the tight liquidity and volatility in the interest rates, the offer was taken up,” he said.
He said the money will go into boosting the bank’s lending portfolio and market diversification.
RIPPLE EFFECTS
Family Bank chairman Wilfred Kiboro said the receivership of Imperial bank had a negative impact in raising funds since banks are interlinked.
“Banks have credit lines with each other and when you hear one bank is in trouble, a lot of them are. A lot of fund managers have their money locked up in Imperial Bank,” he said.
Fixed income investors have Sh2 billion bond stuck in Imperial Bank which was supposed to go live on the Nairobi Securities Exchange the day it was placed under receivership.
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