Family Bank Redeems Ksh 2 Billion Medium Term Note

Family Bank Redeems Ksh 2 Billion Medium Term Note

Family Bank has redeemed its five and half years (5 and ½ year) Medium-Term Notes (MTN) worth 2.0188 Billion shillings that were due on 19 th April 2021.

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 percent coupon, Mixed Rate Notes with a 14.00 percent coupon, and Floating Rate Notes with a 182-day T-bill coupon rate plus 250 basis points.

“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. “We remain focused on the growth of the Bank to continue meeting the needs of our customers,” she added.

The lead transaction advisors for this transaction were NIC Capital & Faida Investment Bank, Deloitte & Touché as the reporting accountants, MTC Trust as the Note Trustees while Mboya Wangong’u & Waiyaki Advocates were the legal advisors.

In March this year, Family Bank posted an impressive 1.440 billion shillings Profit Before Tax for the group for the Full Year 2020 against 1.422 billion shillings in 2019, a 1.3 percent growth, demonstrating the Bank’s resilience amidst a challenging environment.

The Group reported a 14.9 percent growth in the total assets to 90.6 billion shillings with customer deposits registering a growth of 20.3 percent to 69.8 billion shillings for the period under review.

Investments in government securities increased by 65.9 percent from 10.2 billion shillings to 17 billion shillings. This boosted the Bank’s liquidity position to 37.1 percent, significantly above the minimum requirement of 20 percent.

“Our loan book expanded by 11.8 percent year on year to close at 56.6 billion shillings as we continued to support our customers who saw new opportunities despite the COVID-19 pandemic. This support was in diverse sectors such as manufacturing, agribusiness, trade, logistics, and technology,” said Family Bank Chief Executive Officer Rebecca Mbithi. More Articles From This Author

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