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NIC Bank raises 2 bln shillings in cash call

Wednesday, 10 Oct 2012 | 5:28 AM ET

NAIROBI, Oct 10 (Reuters) - Kenyan lender NIC Bank has raised 2 billion shillings ($24 million) from an over-subscribed rights issue that will fund expansion and a new banking platform.

The bank, a mid-tier lender and one of a number which has turned to the stock market this year to raise funds for expansion, said on Wednesday investors applied for more than three times the amount of shares on offer.

The funds will be used to buy a new banking technology platform as well as set up new branches in Kenya and in neighbouring Tanzania and Uganda where it has operations.

Investors applied for shares worth 7 billion shillings, amounting to a 338 percent subscription rate for the 98.7 million shares on offer, NIC said.

Shareholders did not apply for 12.7 million shares they were entitled to under the one-for-four rights issue, meaning those who had sought more shares than they were entitled to, would be allocated additional shares, it said.

($1 = 85.00 Kenyan shillings)

(Reporting by Duncan Miriri; Editing by Dan Lalor)

(nairobi.newsroom@reuters.com; Tel: +254 20 2224717)

Keywords: KENYA NIC/RIGHTS