Kenya: National Bank Receives Sh3 Billion Loan From NSSF

Jun 13, 2017 | Daily Nation; All Africa

National Bank NBK on Monday received a Sh2.9 billion shareholder loan from the National Social Security Fund amid reports that KCB Group plans to acquire a majority stake in the troubled mid-tier lender.

The State-run pension scheme, which owns a 48.05 per cent stake in the NBK, has finally offered the tier II capital after mulling over the lender's loan request for about a year. NBK chief executive Wilfred Mutuku Musau steered clear of the proposed takeover, only saying the bailout would help shore up the bank's capital ratios that have already slipped below regulatory requirements. "We are grateful to our shareholders and board of directors for making available the capital to assist propel the bank's growth. This shows the level of confidence NSSF and other shareholders have in the future of National Bank," he said. "It is not convertible to equity." Mr Musau declined to divulge details on the tenor and pricing of the shareholder loan. Read more on All Africa.

Source: All Africa