Family Bank gears up for expansion in Sh4 billion rights issue
What you need to know:
Family Bank’s quest to raise Sh4 billion through a cash call kicked off with the lender offering shareholders additional 200 million new stock at a discounted price of Sh22 per share.
The mid-sized lender is offering four new shares for every 25 held in a bid to boost capital ratios and fund expansion.
Family Bank is pursuing a multi-pronged capital raising strategy – a mix of debt and equity – as part of its five-year capital raising plan.
Family Bank’s quest to raise Sh4 billion through a cash call kicked off with the lender offering shareholders additional 200 million new stock at a discounted price of Sh22 per share.
The mid-sized lender is offering four new shares for every 25 held in a bid to boost capital ratios and fund expansion.
The rights issue which opened last Tuesday and will close on June 27.
Family Bank chairman Wilfred Kiboro on Friday urged shareholders to take up the offer saying the lender continues to be a ‘homegrown success’.
“Family Bank is a strong institution that continues to play a central role in this country’s development. We are here to stay. I urge shareholders to exercise their full rights,” said Mr Kiboro.
The bank’s chief executive David Thuku said the additional capital will be key as the lender eyes top-tier status.
“We will continue to expand our business to 100 branches by end of this year. We will be rolling out innovative yet relevant financial solutions while enhancing our procedures and systems,’’ said he said.
NIC Capital is the lead transaction advisors in the rights issue with Alpha Africa Asset managers as investment advisors, Walker Kontos Advocates legal advisors, and Deloitte & Touché the reporting accountants. The rights issue was approved by shareholders during their annual general meeting on April 22.
Family Bank is pursuing a multi-pronged capital raising strategy – a mix of debt and equity – as part of its five-year capital raising plan.
Last year the lender raised Sh2 billion through a corporate bond that is currently trading on the Nairobi Securities Exchange.
This year the bank plans to hit the 100-branch mark from its current 92 outlets with 8 more branches slated for opening by end of this year including JKIA, Wangige, Kutus, Eastleigh, Isiolo, Tea Room, Kenyatta University UNI-City and Kondele.
It is also expanding its agency banking model, targeting a total of 10,000 agents by end of the year.
Currently the lender has more than 4,000 active agents.
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