KCB Rights Open Trading at Regional Stock Exchanges
KCB Rights today opened and commenced trading at the Nairobi Stock Exchange, Uganda Securities Exchange (USE), Dar es Salaam Stock Exchange (DSE) and Rwanda over the Counter (ROTC).

KCB has offered 887.1 million ordinary shares to eligible shareholders at the ratio of 2 new shares for every 5 ordinary shares held at a discounted price of Kshs 17 through a Rights Issue in a bid to raise Kshs 15 billion.
The last day of trading in KCB Rights will be on July 12, 2010 while the Offer Closing and last date for acceptance and payment of new shares will be on July 23, 2010. 

“The purpose of the Rights Issue is to facilitate the bank’s medium long-term strategy that focuses on consolidating the business in all its markets of operations and meet growth needs, grow profitability and market share,” KCB Group Chairman Peter Muthoka said.

The Rights Issue is a privilege given to the existing shareholders to buy additional shares on a pro-rata basis to their current holding. 
The Chairman said the bank will also support its Mortgage Division and roll out attractive mortgage products as demand for housing units increase in the country and region.

The Deputy Prime Minister and Minister for Finance Hon Uhuru Kenyatta said the path KCB has taken to strengthen its capital base to solidify its position a leading financial institution in this country was timely. 

“It augurs well for my ministry to see banks and financial institutions beefing up their capital positions without having to wait for regulators to tell them so.  In my budget speech this year, I announced an increase in core capital threshold for mortgage leaders from 25 percent to 40 percent and I am happy to note that through prudent planning and foresight, KCB will not be bothered by that requirement,” said Uhuru.

The Minister said that KCB focus on the rural economy through its wide branch network and the offering of such products will suit the bottom-of-the-pyramid population especially targeting the SME and Micro sectors.
“…It avails both savings and lending opportunities for the people of Kenya and indeed the region,” he added.

The KCB Rights Issue has attracted investors across the region. KCB shares are cross-listed on the Nairobi Stock Exchange (NSE), Uganda Securities Exchange (USE), Dar es Salaam Stock Exchange (DSE) and Rwanda over The Counter (ROTC).

KCB is a regional brand with presence in Kenya, Uganda, Tanzania, Rwanda and Southern Sudan. It has a total of 212 branches with the largest balance sheet at Kshs 220 billion.

The bank has installed over 370 ATMs and customers have access to 110 PesaPoint units and 250 Kenswitch outlets. KCB has a state-of-art core banking system, T24, which has enabled it to introduce technology-driven products and services such as the Contact Centre and KCB Connect.

Notes to the Editor
KCB Group has had two successful Rights Issues in the past; in 2004 and 2008.

In 2004, KCB raised Kshs 2.3 billion which supported the bank to grow its business substantially.

Similarly, in 2008 the bank raised Kshs 5.2 billion which was used to finance its regional expansion into Uganda and Rwanda.
Both Rights Issues were oversubscribed.