NAIROBI, Jan 22 (Reuters) - Kenya’s CFC Stanbic bank raised 5.08 billion shillings ($55.41 million) through a multi-currency medium term bond to help it balance its funding against loans to customers, it said on Thursday.
Kenyan lenders usually face the problem of writing mid- to long-term loans while relying on very short-term customer deposits, forcing them to explore other funding avenues like corporate bonds.
The lender, which is owned by CFC Stanbic Holdings, a unit of South Africa’s Standard Group, said the amount raised from the seven-year bond represented a 27 percent oversubscription on its 4 billion shillings target.
Greg Brackenridge, chief executive of the bank, said the funds will be used to “better match the average tenor of the bank’s funding with the average tenor of customer loans and advances.”
CFC Stanbic’s bond offered a fixed coupon rate of 12.95 percent. The bank has issued three other bonds previously.
$1 = 91.6800 Kenyan shillings Reporting by Duncan Miriri; Editing by James Macharia