BOND

Family Bank redeems Sh2bn Medium Term note

The lead transaction advisors for this transaction were NIC Capital and Faida Investment Bank

In Summary
  • On this maturity date, the bondholders have been paid their principal together with the accrued interest of the final six months.
  • The notes included Fixed Rate Notes with a 13.75 per cent coupon, Mixed Rate Notes with a 14.00 per cent coupon.
Family Bank CEO Rebecca Mbithi speaking at the investor forum
Family Bank CEO Rebecca Mbithi speaking at the investor forum
Image: HANDOUT

Family Bank has redeemed its five and half year  Medium Term Notes (MTN) worth Sh2.0188billion.

On maturity of the MTN on Monday, April 19, bondholders were paid their principal investment together with the accrued interest of the final six months.

The note includes Fixed Rate Notes with a 13.75 per cent coupon, Mixed Rate Notes with a 14.00 per cent coupon and Floating Rate Notes with a 182-day T-bill coupon rate plus 250 basis points.

Medium-term notes are debt securities issued by an organisation over a period of time continuously with maturities usually ranging from 5 to 10 years.

“We wish to thank the investors who participated in the medium-term note. The MTN which was issued back in 2016 and listed in the Nairobi Securities Exchange supported the Bank in its expansion plans and served to strengthen the capital base to be able to increase lending to Medium and Small Sized Enterprises,” said Family Bank Chief Executive Officer Rebecca Mbithi.

She said the bank remains focused on the growth in order to meet the needs of its customers.

The lead transaction advisors were NIC Capital & Faida Investment Bank.