Credit Bank Plc, the Nairobi-based lender owned by the family of the late Kenyan politician and businessman Simeon Nyachae, has secured shareholder approval to raise Ksh4.5 billion 35 million through a rights issue, a move aimed at shoring up its balance sheet and meeting tougher capital rules set by Kenyas banking regulator.
Shareholders at an extraordinary general meeting on Dec. 19 approved the issuance of up to 45 million new ordinary shares priced at Ksh100 0.77 each. The offer will be made through a private placement to existing shareholders and other qualified investors.
Polling results showed near-unanimous support. About 19.7 million shares, representing 99.9 percent of votes cast, were in favor of authorizing the issue and allotment. The bank said proceeds would be used to strengthen its capital base.
