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Kenya's NIC Bank raises $57 mln in bond issue for expansion
September 5, 2014 / 11:17 AM / 3 years ago

Kenya's NIC Bank raises $57 mln in bond issue for expansion

NAIROBI, Sept 5 (Reuters) - Kenya’s NIC Bank has raised 5 billion shillings ($57 million) in a bond designed to increase its capital base, lending and branch network, the company said on Friday.

The lender, which also operates in nearby Tanzania, said in a statement it planned to increase personal and business loans and reach more customers across the region.

The bank last month received regulatory approval to issue a total of 8 billion shillings worth of bonds to fund its expansion plans. It plans to issue bonds worth 3 billion shillings at a later date.

The first tranche of the bond worth 5 billion shillings has a yield of 12.5 percent. The bond was initially meant to raise 3 billion shillings, but received bids worth 6.5 billion shillings. The bank decided to accept 5 billion shillings.

The bond will be listed on the Nairobi Securities Exchange’s secondary market. By 1037 GMT, NIC shares were up 1.4 percent to trade at 72.50 shillings on the exchange.

The bank has previously said it planned to raise a further 2 billion shillings through a rights issue at a later date, as part of its plan to use a combination of debt and equity to finance its growth. (1 US dollar = 88.5000 Kenyan shilling) (Reporting by George Obulutsa; Editing by James Macharia Keiron Henderson)

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