Family Bank has received formal approval from shareholders to offer up to 800 million new shares through a rights issue, a move that will increase the lender’s issued authorized ordinary shares from the current 1,500,000,000 to 2,300,000,000.
Through this increase in ordinary shares, the bank aims at raising up to Sh10 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.
“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,” Family Bank CEO Rebecca Mbithi, said.
The funds raised through the rights issues that commenced on October 19, 2023 and closes on November 30, 2023, 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.
