Kenya: Credit Bank Seeks Shareholder Nod for Sh4.5 Billion Private Placement in Major Capital Raise

By Phidel Kizito

Nairobi — Credit Bank has moved to secure fresh capital through a Sh4.5 billion private placement, seeking shareholder approval to issue 45 million new ordinary shares as part of a sweeping balance-sheet strengthening plan.

The proposal, to be tabled at an Extraordinary General Meeting (EGM) on December 19, targets existing shareholders and qualified investors.

If approved, the private placement will give the board wide latitude to determine pricing, timing, allocation, and other issuance terms.

"The proceeds of the issue shall be applied towards improvement of the Bank's capital," the notice states.

"The private placement shall be undertaken in accordance with the Capital Markets Regulations and shall not constitute a public offer of shares."

Alongside the cash call, the lender is also seeking approval to issue Sh3 billion in preference shares, a new class of equity designed to provide the lender with flexible tools for raising additional long-term capital.

The board would set dividend rights, redemption options, conversion features, and any associated privileges.

The bank is further asking shareholders to endorse a Sh1.2 billion asset-for-shares swap involving property on Kamburu Road in Upper Hill, and a USD 1.5 million convertible note to ShareCap II LP, which would qualify as supplementary capital.

If passed, the resolutions would mark one of the largest capital-raising efforts by a mid-tier lender this year, providing Credit Bank with expanded capacity to meet regulatory and operational funding needs.

Read the original article on Capital FM.

Copyright © 2025 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.