Sources said the mid-sized lender will issue a private bond of Sh650 million and take an extra Sh350 million if investor appetite allows.
The lender will drop the option if investors do not subscribe for Sh500 million. The bank is looking to match demand for long tenor assets to the growing SME sector with long term liabilities. The funds are also expected to support the bank's expansion plans.
For a private bond the lender does not require approval from the
The lender is said to be undergoing a credit rating which will help it bring on board new investors.
The bank is expected to be involved in more capital raising activities in line with Central Bank of
CBK requires banks to have a capital to deposits ratio of 10.5 per cent and a capital to advances ratio of 14.5 per cent.
"Most institutions are buffing up in reference to the deadline so we are likely to see more capital raising activities," said
It also operates a stockbrokerage business,
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