Family Bank has redeemed its five and half years Medium-Term Notes worth KSh 2.0188 Billion that was due on 19th April 2021. On this maturity date, the bondholders have been paid their principal together with the accrued interest of the final six months.
Family Bank Medium-term Notes return to bond holders
The notes included Fixed Rate Notes with a 13.75% coupon, Mixed Rate Notes with a 14.00% coupon and Floating Rate Notes with a 182-day T-bill coupon rate plus 250 basis points.
Rebecca Mbithi, Family Bank CEO, said the bond, which was issued back in 2015 and listed in the Nairobi Securities Exchange, supported the Bank in its expansion plans and strengthened the capital base to increase lending to Medium and Small Sized Enterprises.
For this transaction, the lead transaction advisors 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.
The KSh 2 billion Family Bank medium-term note, issued on 26th October 2015, matured on 19th April 2021.
Family Bank is among lenders who recorded an increase in net earnings for the year ended 31st December 2020.
Meanwhile, activity in the Corporate Bond Market remains lacklustre.
At least five firms that had issued a corporate bond shut down their operations, leaving bondholders with empty pockets.
Nakumatt Supermarket, Chase Bank, Imperial Bank, and cement maker Athi River Mining (ARM) are among issuers who have collapsed with unpaid bonds or commercial paper.
Figures from the NSE and CMA show that commercial paper outstanding as of 30th June 2020 was KSh 27.93 Billion.
These include the KSh 4 Billion Stanbic multicurrency medium-term note that matures on 8th December 2021. The EABL Fixed Medium-term note (second tranche) has an outstanding amount, with this instrument maturing on 28th March 2022.
The Acorn Project Bond worth KSh 786 Million, issued on 31st July 2019, matures on 8th November 2024.