Family Bank on 2nd June 2021 received formal approval from the Capital Markets Aut**rity to raise up to Ksh8 b***ion in tranches through a multi-currency Medium Term Note (MTN) by way of public offer to strengthen its capital base and support lending.
Family Bank targets to raise Ksh4 b***ion in its first tranche with the balance to be raised within the next five years in various tranches/series. “We are positioning the bank for the second phase of growth as per our 2020-2024 strategy anc**red on growth and ****ility of the bank,” says Family Bank CEO Rebecca Mbithi.
This issuance comes after the Bank successfully redeemed its five-and-a-half year Medium Term Note worth Ksh2.0188 billion on 19th April 2021.
The banks wants to strengthen its capital base to support lending to micro, small and medium-sized enterprises and heavily invest in technology infrastructure while diversifying its products.
The lead transaction advisors are NCBA Investment Bank and Genghis Capital, Pricewater**useCoopers (PwC) as the reporting accountants, MTC Trust and Corporate Services Limited as the Note Trustees, Mboya Wangong’u & Waiyaki Advocates as the legal advisors and Tim-Sky Media Services as the Media and Public Relations consultants.
Profit before tax over the past five financial years grew at compounded annual growth rate of 21.3% from 2016 to 2020. Interest income continues to be the p***ary revenue stream, contributing on average 77% of total income, over the past five years.
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There has also been an impressive increase in non-funded income, which has grown by a compounded annual growth rate of 4.9% over the past five financial years from Ksh2.1 b***ion in 2017 to Ksh2.6 b***ion in 2020.
The growth is mainly attributed to a significant increase in foreign exchange trading income and fees and commissions on loans and advances. On the balance sheet side, Family Bank has recorded impressive growth in total ***ets at a compounded annual growth rate of 6.9%, customer deposit at 13.9%, share**lder funds at 1.3% and loans and advances at 3.1% d****g the period 2016 to 2020.
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