Jamii Bora Bank has raised Sh500 million through a rights issue, targeting to grow its assets and cut liabilities as well as strengthen its capital base.
The Tier 3 bank Wednesday announced a 107 per cent subscription rate for a recently concluded rights issue that closed on September 30.
The bank’s shareholders in April had approved the issuance of the rights issue to facilitate the lender raise the amount.
“Our shareholders are fully behind the bank in its efforts to surmount the challenges facing Tier 3 banks in a very competitive market and management is very grateful for their commitment and support,” said the bank’s group chief executive, Sam Kimani.
The bank will use the proceeds to strengthen its lending capacity, shore up its capital in order to meet statutory ratios, invest in technology and operational efficiency initiatives as well as finance its young leasing subsidiary, Jamii Bora Leasing Ltd.
The lender, which has a customer base of over 128,000 and 22 outlets country wide, has raised over Sh2 billion through various rights issues since 2012.