MEDIUM TERM

Family bank's corporate bond commences trading at the NSE

In April 2021, the Bank successfully redeemed its five-and-half year Medium Term Notes worth Sh2.0188 billion that was issued in 2016

In Summary
  • The Capital Markets Authority gave a nod to list the first tranche of its Medium Term Note under the Fixed Income Market Segment at the NSE.
  • This after a successful offer that raised a total of Sh4.42 billion against a Sh3 billion target, marking a subscription of 147.3 per cent.
NSE Chairman Kiprono Kittony, Family Bank Chairman Wilfred Kiboro, Family Bank CEO Rebecca Mbithi and NSE CEO Geoffrey Odundo at the bell ringing to mark the listing of the Family Bank Corporate Bond at the NSE
NSE Chairman Kiprono Kittony, Family Bank Chairman Wilfred Kiboro, Family Bank CEO Rebecca Mbithi and NSE CEO Geoffrey Odundo at the bell ringing to mark the listing of the Family Bank Corporate Bond at the NSE
Image: HANDOUT

Family Bank Limited yesterday rang the bell to mark the listing and the commencement of trading of its corporate bond at the Nairobi Securities Exchange (NSE).

The Capital Markets Authority gave a nod to list the first tranche of its Medium Term Note under the Fixed Income Market Segment at the NSE.

This after a successful offer that raised a total of Sh4.42 billion against a Sh3 billion target, marking a subscription of 147.3 per cent.

The response that this bond has generated demonstrates the confidence the market has in the Family Bank brand despite constrained liquidity in the money market as evidenced by the tough economic environment due to the Covid-19 pandemic,” said the bank CEO Rebecca Mbithi.

In April 2021, the Bank successfully redeemed its five-and-half year (5 and 1⁄2 year) Medium Term Notes (MTN) worth Sh2.0188 billion that was issued in 2016 and listed on the NSE.

Speaking during the bell ringing ceremony at the NSE trading floor, Kiprono Kittony, the NSE Chairman noted that the oversubscription of the initial bond demonstrates the confidence investors have in Family Bank and affirms the importance of the corporate bond market as a key source of business financing.

“The success of this bond supplements the growth of NSE’s corporate bond market that has witnessed a total capital raise of Sh13.6 billion in the last two years,” he added.

Geoffrey Odundo, Chief Executive, NSE congratulated Family Bank on their tremendous growth over the past few years and welcomed them back to the market.

We are delighted that Family Bank are returning for another listing of their corporate bond. This is an indication of the potential recovery of the corporate bond market and an acknowledgement of the rising investor appetite in our market for debt securities.”

The Bank raised Sh4.42 billion from local fund managers, banks, retail investors, insurance companies and other institutional investors.

The Note will bear interest at a fixed annual rate of 13.0 per cent until maturity on December 17, 2026.