Regulator Approves Sh1 Billion Rights Issue

The Capital Markets Authority (CMA) has approved the NIC Bank's Sh1 billion rights issue. The move by the market regulator paves way for the bank's shareholders to exercise their rights.

The shareholders had unanimously approved the issue at extra-ordinary general meeting in August. Managing Director, Mr James Macharia, welcomed the development, which he described as a key milestone in the process.

"We are now ready to kick off the process, allowing our shareholders to exercise their rights and inject additional capital," he said in a statement.

NIC intends to use the additional capital to fund its growth strategy, including branch network expansion and increase its capacity for new business. The funds will boost NIC Bank's shareholders' funds from current Sh3.1 billion to over Sh4.1 billion.

The bank has offered a rights issue of one share for every five shares held and an interim dividend in the form of a bonus issue of two ordinary shares for every 1 share held. The bonus issue will be affected after the rights issue is concluded and shares allotted.