Family Bank Ltd Multicurrency Medium Term Note Programme

Family Bank has received formal approval from the Capital Markets Authority (CMA) to raise up to KES 10 billion through a Multi-currency Medium Term Note (MTN) programme.  This transaction will be by way of public offer of debt securities by the Bank.

The Notes will be issued in tranches with the first KES 4 Billion tranche launched on Wednesday 7th October 2015. The Proceeds will be used to support the on-going expansion plans and strengthen the capital base of the bank.

PROGRAMME Senior Unsecured/Subordinated Multicurrency Medium Term Note Programme
PROGRAMME SIZE Up to KES 10,000,000,000 or the equivalent in other currencies at the date of issue
TRANCHE 1 ISSUE SIZE Up to KES 4,000,000,000 with a green shoe option of up to KES 2,000,000,000
PURPOSE The proceeds will be used to support the ongoing expansion plans and strengthen the capital base
TENOR 5.5 year bullet note
ISSUE PRICE i. Fixed Rate Notes:
  • 5.5 year notes: 90.5328% of the Aggregate Nominal Amount
  ii. Floating Rate Notes:
  • 5.5 year notes: 100% of the Aggregate Nominal Amount
  iii. Floating Rate Notes:
  • 5.5 year notes: 100% of the Aggregate Nominal Amount.
OFFER OPENS 7 October, 2015
OFFER CLOSES 21 October, 2015
SETTLEMENT DATE / ISSUE DATE 26 October, 2015
MINIMUM AMOUNT TO INVEST KES100,000
COUPON RATE i. Fixed Rate Notes:
  • 5.5 year notes: 13.75% per annum payable semi-annually.
  ii. Floating Rate Notes:
  • 5.5 year notes: 182 day T bill + 250bps payable semi-annually.
  iii. Mixed Rate Notes:
  • 5.5 year notes: 14% per annum payable semi-annually.
RATE CAPS/ RATE FLOORS/ UPSIDE POTENTIAL Fixed Rate Notes:
  • 5.5 year notes: None.
  Floating Rate Notes:
  • 5.5 year notes: Coupon Cap rate – 17.5%, Coupon Floor rate – 12.50%.
  Mixed Rate Notes:
  • Initial Book value is as at 31st December 2014
  • Closing Book Value will be as at 31st December 2020
  • Book Value appreciation is capped at 30.0% and is based on the audited 2014 Family Bank’s Annual Financial Results.
  • Every 2% appreciation in Book Value of the Company entitles the investor to a 1% addition to the redemption price at maturity;
  • Final redemption price assuming 30.0% book value appreciation – 115% of face amount.
INTEREST PAYMENTS Semi-annually
INTEREST PAYMENT DATES 26 April, 2016               22 April, 2019

24 October, 2016         21 October, 2019

24 April, 2017               20 April, 2020

23 October, 2017         19 October, 2020

23 April, 2018               19 April, 2021

22 October, 2018

 
REDEMPTION/PAYMENT BASIS Redemption at par or premium
FINAL MATURITY DATE 19 April, 2021
SECURITY AND FORM Unsecured
STATUS OF THE NOTES Subordinated 
LISTING Listing at the Nairobi Securities Exchange
LISTING DATE 3rd November, 2015
DOCUMENTATION AND GOVERNING LAW Kenyan law: Covenants, events of default customary to this type of financing
MANDATED LEAD ARRANGERS AND PLACING AGENTS NIC Capital Limited and Faida Investment Bank Limited
ISSUE AND PAYING AGENT, CALCULATION AGENT AND REGISTRAR   Family Bank Limited
LEGAL COUNSEL Mboya Wangong’u & Waiyaki Advocates
REPORTING ACCOUNTANTS Deloitte & Touche
NOTE TRUSTEES MTC Trust and Corporate Services Limited
PUBLIC RELATIONS AND MARKETING ADVISORS BSD Group
RECEIVING BANK Family Bank Limited
   

Click here to download Information MemorandumFamily Bank_MTN _Information Memorandum

For more information  please contact:
1. Managing Director, NIC Capital, Tel: +254 (020) 2888000, Email: NIC Capital.InvestmentBank@nic-capital.com

2. Corporate Finance Director, Faida Investment Bank, Tel: +254 (020) 2243811, Email: info@fib.co.ke