Family Bank has received formal approval from shareholders to offer up to 800 million new shares through a rights issue. This will increase the Bank’s issued authorized Ordinary shares from the current 1,500,000,000 Ordinary Shares to 2,300,000,000 Ordinary Shares.
Through this increase in Ordinary shares, the Bank targets to raise up to KES 10 billion in the medium term. The capital raise will be achieved through a mix of a rights issue and from new shareholders via a private placement.
The funds raised through the rights issues will go towards strengthening the bank’s capital base, for local and regional growth plans, driving investments in IT infrastructure and new product initiatives and supporting onward lending activities.
“Through this capital raise, we are positioning the Bank for the next phase of growth which will position the bank as a choice bank for our existing and potential clients through customer-first service delivery not only in Kenya but also in the region,”
added Rebecca Mbithi.
The rights issue opens on 19th October 2023 and closes on 30th November 2023.
‘Family Bank has demonstrated a superior track record by above the industry compounded annual growth rates in total assets, loan book and deposits over the last four (4) years. The before tax return on Equity has significantly improved to 24% in December 2022. This continues to demonstrate efficient capital allocation for maximized returns to the shareholders. On behalf of the Board of Directors, I would like to encourage you to participate in this rights issue,’
said Family Bank Board of Directors Chairman Dr. wilfred Kiboro.
Family Bank prides itself in growing a strong retail customer base with a key focus on SME banking anchored on the positive transformation of people’s lives in Africa.
Family Bank is the fifth-largest bank in Kenya, as of Dec 2020, in terms of branch network with 93 branches across 32 counties.
The Bank has over 750,000 customers, 4,800 bank agents, and over 8,000 merchants countrywide with total assets of KES 128 billion and a deposit base of KES 100.8 billion as at 30 June 2023.