Yesterday Mr James Macharia, NIC Bank’s chief executive officer, announced that plans were underway to complete a Ksh 2 billion rights issue by end of July, this would make it the second listed firm after Kenya Airways to tap the capital markets this year.

The rights issue is to raise capital for expansion as the bank hopes to set up a Ugandan subsidiary this year on which the bank will spend Ksh 961 million.

This will be the second rights issue by the bank, in 2007 NIC Bank offered 16.48 million shares through a rights issue that attracted Ksh 1.7 billion. This was largely used to expand its branch network in the domestic market.

Other banks such as Co-operative Bank of Kenya, Diamond Trust Bank and CFC Stanbic have also alluded that this year they will be seeking additional capital through rights issues to finance expansion.

Read more in the Business Daily.