October 23rd, 2014
Listed lender NIC Banks Rights Issue to raise Ksh2.1 billion opens today morning at the Nairobi Securities Exchange.
The proceeds of the Rights Issue will be used to accelerate the banks expansion plans which include new branches and regional expansion as it eyes a larger slice of the East African cross-border financial market. The banks issue will close on Friday November 14th, 2014.
The bank received approval from the Capital Markets Authority (CMA) to raise the money on September 24th. The bank is offering a total of 42,663,040 new shares at Ksh 49.25 per share on the basis of one new share for every 14 ordinary shares that were held on the register by Thursday, October 2nd, 2014.
NIC Bank Group Managing Director John Gachora says the money raised is part of the bank expanding its capital base and diversifying its business portfolio.
“This is a significant milestone for us as we prepare to take NIC Bank to the next growth level both in Kenya and the region. We believe the issue will be successful and will help us to focus on continued growth in the coming years with more focus on deal-making opportunities in Kenya and the region,” said Mr Gachora.
This is the bank’s third rights issue in seven years. In 2007, NIC raised Ksh 1.1 billion through a Rights Issue, which was 49 per cent over-subscribed. In August 2012, NIC Bank successfully raised a further Ksh 2.1 billion through a Rights Issue which was over-subscribed by 238 per cent. The bank has over the last 6 years established a presence in both Tanzania and Uganda.
In August of this year, the bank’s shareholders approved the lender to raise additional capital via debt and equity. In September, NIC listed and started trading its Ksh5.5 billion bond at the Nairobi Securities Exchange (NSE).
The Medium Term Note received offers of Ksh 6.5 billion and was upsized to Ksh 5.5 billion from the original Ksh 3 billion. This was the first tranche under the Ksh 8 billion Medium Term Note Program.
NIC Capital Limited, a subsidiary of NIC Bank Group, is the lead arranger for the transaction while NIC Securities is the sponsoring brokerage firm. The bank is one of the oldest listed firms on the Nairobi Securities Exchange where it has been listed since 1971.
For further information, please contact: NIC Bank’s Marketing & Communications Manager, Lena Karauri-Sitoyo, firstname.lastname@example.org or +254 20 2888390