Family Bank shareholders have given the tier two lender the go-ahead to offer 800 million new shares to investors through a rights issue as part of its efforts to raise Ksh 10 billion in fresh capital in the medium term.
The bank says additional funds will come from new shareholders via a private placement.
Family Bank Chief Executive Officer Rebecca Mbithi said 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,” said Mbithi.
The new shares will increase Family Bank’s issued authorized ordinary shares from the current 1.5 billion Ordinary Shares to 2.3 billion Ordinary Shares.