NIC Bank raises 2 bln shillings in cash call

NAIROBI, Oct 10 (Reuters) - Kenyan lender NIC Bankhas raised 2 billion shillings ($24 million) from anover-subscribed rights issue that will fund expansion and a newbanking platform.

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

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

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

Shareholders did not apply for 12.7 million shares they wereentitled to under the one-for-four rights issue, meaning thosewho had sought more shares than they were entitled to, would beallocated 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)


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