Family Bank has announced that it is offering 800 million new shares for sale through a rights issue, following approval from shareholders.

This will increase the bank’s issued authorized ordinary shares from the current 1,500,000,000 ordinary shares to 2,300,000,000 ordinary shares.

The lender targets to raise up to Ksh10 billion in the medium term through a mix of a rights issue and from new shareholders via a private placement.

How Family Bank will use the funds

In a statement, the lender said the funds raised through the rights issues will go towards strengthening the bank’s capital base, for local and regional growth plans, driving investments in IT infrastructure and new product initiatives and supporting onward lending activities.

“Through this capital raise, we are positioning the Bank for the next phase of growth which will position the bank as a choice bank for our existing and potential clients through customer-first service delivery not only in Kenya but also in the region,” Family Bank CEO Rebecca Mbithi said.

The rights issue opens on October 19, 2023, and closes on November 30, 2023.