Chase Bank Kenya has today received approval to raise up to Ksh10 billion through a Medium Term Note programme from the Capital Markets Authority (CMA).
This paves the way for the bank to raise additional capital to support its strategic initiatives. The Note Programme will be issued in several tranches with a 7 year tenor, with the first tranche expected to be launched in mid-May this year.
Paul Njaga, CEO of Chase Bank said the multi-currency Note issue will go a long way in sustaining domestic momentum for the bank and increase international visibility in light of current and future plans for the bank. The proceeds will be used to strengthen the bank’s core capital, onward lending activities to SME’s, Youth, Women and Agri business. This also feeds into the expansion of the branch network, investment into IT and Product Development initiatives.
Genghis Capital, an associated company of the bank, together with NIC Capital are the appointed transaction advisors for the Offer. Genghis Capital together with NIC Capital are the appointed transaction advisors while Mboya Wangong’u and Waiyaki Advocates are the legal advisors to the Issue. Sammy Ghannam, Associate Director at Genghis Capital said the Note programme is coming at time where there is a lot of investor confidence in Corporate Bonds and yields remain sustainable. By having a multi-currency programme the bank will also be in a position to leverage off the success of last year’s Eurobond which saw high subscription levels.