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Family Bank Approved to Exercise Green Shoe Option

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Family Bank Approved to Exercise Green Shoe Option


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Family Bank gets approval from the Capital Markets Authority (CMA)to exercise the Green Shoe Option of Kes one billion on Oversubscribed Medium-Term Note (MTN).

Following the Bank’s first tranche of its multi-agency MTN recorded an oversubscription of 14.7 percent.

Notably, CMA had allowed the Bank to issue an eight million multi-currency MTN program in tranches.

The first tranche issued on June 8th this year comprised three billion with an approved greenshoe option of one billion.

The tranche was oversubscribed.

Raising Kes 4.4 billion from local fund managers, banks,  retail investors,  insurance companies, and other institutional investors.

CMA Chief Executive Officer (CEO) Wycliffe Shamiah says the Bank’s MTN performance is instrumental in reviving the Country’s corporate bond market.

We have allowed the Bank to take up from the investors the Kes 3 billion approved for the first tranche and the extra Kes 1 billion by the same pool of investors that is the Green shoe option.

Shamiah said


Consequently, the funds raised from the bond are to strengthen the banks’ capital base to support growth investment in IT infrastructure, new product initiatives, and onward lending.

Further, the MTN program will be issued as both fixed-rate notes and floating-rate notes.

The notes will have a maturity of fewer than five years.

On the other hand, the fixed-rate notes will bear fixed interest payable on dates specified in the pricing supplement.

The floating rate notes will bear interest benchmarked against the prevailing Treasury bill.

The Kenyan currency-dominated notes will be listed on the Fixed Income Securities Market Segment of the Nairobi Stock Exchange.