The ABC Bank private bond issued in March has attracted 157 percent subscription following high investor appetite. The bank had issued a Sh. 650 million bond with a green shoe option of Sh. 350 million subject to investor enthusiasm. The bank received applications worth Ksh. 1.021 billion against an initial target of Ksh. 650million. All applications received have been allocated in full with the exception of three that have received 93 percent allocation.
‘’We are delighted that investors have expressed their confidence in us. This will assist the bank in providing longer term credit to our SME clients and will also boost the bank’s capital structure and proactively manage upcoming BASEL III capital adequacy ratios requirement in 2015’’, said ABC Bank Group Managing Director Shamaz Savani, adding that the bank will now take the green shoe option as investors have demonstrated a strong enthusiasm in the offer.
The lender issued the bond to raise the total long term lending portfolio due to significant pent up demand and support its growth strategies that include solidifying and securing its leading position in the SME segment. ‘’The enthusiasm demonstrated by our investors is a stamp of confidence in our business, as it is our commitment to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business,’’ added Mr. Savani. The bond issue whose tenure is 5.25 years is managed by the bank’s investment advisor ABC Capital Ltd.