ABC Bank has launched a private bond to raise Ksh 1 billion to grow its lending portfolio. The bank will first issue a Ksh. 650 million with a green shoe option of Ksh. 350 million if investors demonstrate strong enthusiasm.
The bank is offering select investors an opportunity to invest at a rate of 12.6 percent annually for a period of 5.25 years. The proceeds of this issue will enable the bank invest in its core segments of SME and retail banking, expanding branch network besides fulfilling strategic business objectives .
This is a purely private bond offer. It represents the bank’s ambitions to establish itself in the market by taking advantage of the opportunities a larger capital base affords,” said ABC Bank Group Managing Director Shamaz Savani.
The bond gives the lender the confidence to continue to aggressively pursue its strategic objectives in the market, while ensuring superior value for both investors and customers.
The bank’s investment advisors ABC Capital Ltd and Standard Investment Bank will manage the bond issue.
ABC Bank remains consistent in its focus on the SME sector by enabling them reach their potential for growth and supporting them to achieve success. The growth of its balance sheet over the past few years demonstrates the strong demand from customers for financing.
