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FCB Capital

Introduction

FCB Capital Limited is Kenya’s first Islamic investment bank. A fully owned subsidiary of First Community Bank, FCB Capital is the first of its kind in Kenya and in the region. Fully licensed in line with CMA requirements, FCB Capital has been formed to provide Sharia'h compliant investment banking opportunities which are currently not offered by conventional methods of investment banking. The company’s products and services cover a wide range of Sharia'h compliant investment activities, which include;

1. First Ethical Opportunities Fund (FEOF)

One of the company’s pioneer products is the above fund which has recently been granted approval by the Capital Markets Authority of Kenya (CMA).  FEOF is the first Socially Responsible Investment product of its kind in Kenya and in the region to offer Sharia'h compliant investment products. Through the Fund, the company aims to deliver a full choice of alternative investment opportunities, enabling Sharia'h compliant investors to construct balanced portfolios which can access a full range of asset classes.
 
As a dynamic investment avenue, the Fund will continuously seek investment opportunities which are currently untapped by conventional methods of investment banking. The fund will play a pivotal role of directing profit-seeking capital to important socially responsible investment opportunities and will focus on products such as mutual funds including Equity Funds which will invest in Sharia'h compliant Kenyan and regional stocks.

Summary of the Fund and General Requirements  

a). Fund Promoter and Placement Agent
First Community Bank Limited  
b). Offer
The Fund is offering 50,000 Units an initial minimum target size of 50,000 Units at a nominal (issue) price of Kshs. 2,000 per Unit.  
c). Duration of the Fund
An open ended Fund
d). Target Fund Size
The Funds initial minimum target size is 50,000 Units at a nominal (issue) price of Kshs. 2,000 per Unit.  
e). Eligible Investors
Kenyan Nationals (both individuals and institutions) as well as other nationalities who may be eligible top invest in the Fund in accordance with any relevant laws.  
f). Expected Return
The Fund expects to realize for Unit holders a return of 14% per annum, net of all fees and expenses.  
g). Profit Distribution
Net returns due from Fund shall be distributed to the Unit holders every year after a financial audit of the Fund as appropriate. Returns due to Unit holders shall be paid to them within a period of two weeks after completion of the Fund audit.  
h). Redemption
Units may wholly or partially be redeemed monthly following a Valuation of the Fund. Redemption will be based of the Net Asset Value (NAV) of the Fund as further clarified in the relevant section of the Information Memorandum.

2. Structured Trade Finance Portfolios

At FCB Capital we realize that there are many SME’s whose potential for growth has been stifled by their inability to raise funding for their trade requirements via traditional banking facilities.  Equipped with the combination of expertise and a good network of business relationships both regionally and internationally, we have been able to offer a wide range of innovative, tailor-made, Sharia compliant trade Finance solutions to our clientele. By focusing on the structure and specific perspectives of each transaction as opposed to a client’s balance sheet standing, we continue to add value to the supply chain and commercial needs of our customers who are usually involved in large bilateral strategic relationships and high value commodity flows.
 
Our trade finance products are used by different clientele such as traders (both importers and exporters), producers, processors, and industrial end-users. Our product range includes the following:
 
•          Limit Based financing (finance of working capital assets on a revolving basis)
•          Pre-export (prepayment) Finance
•          Import Finance.
•          Processing Finance (financing the conversion or processing of raw commodities into value added products)
•          Warehouse financing (finance of commodity inventories)  

3. Collateral Management 

Through Collateral Management Agreements we provide tailor made financing and end-to-end solutions to enable the financing of short term working capital or long term capital expenditure needs of our clientele.
 
Each financing arrangement is tailored to the particular needs of the client with the transaction usually backed by the physical commodities which are taken under safe custody of a professional, independent, reputable third party entity on behalf of the company. Through proper management of the underlying goods during the different stages of the value chain, the financing under such an arrangement is made from the sale/export proceeds of the underlying goods.  

4. Structuring and Issuance of Sukuk

The significance of Sukuk in the Islamic investment management industry is immense since it fills the gap of fixed income asset class. Sukuk are investment certificates that represent ownership claims in pools of investment assets or services.
 
Widely known as Islamic bonds, Sukuk employ the principles of Islamic finance in order to provide Sharia'h-compliant tradable securities, the financial characteristics of which are very similar to those of conventional bonds.
 
FCB Capital is taking a hands-on approach to developing and promoting the Sukuk market in Kenya to complement the role of bank financing. This includes working closely with related Kenyan government authorities in creating the legislative and regulatory framework for Sukuk offerings.
 
With growing regional economies, the demand for funds is on the increase as the number of projects to be funded in the region in the next 10 years, either by governments or the private sector, continue to rise while at the same time requiring billions of US Dollars to execute. Hence, Sukuk as a development oriented product is expected to become a key source of financing for these projects.
 
Through the development and provision of Sukuk as an alternative source of financing, we aim to fulfil various objectives including increasing the diversity and depth of the capital market.
 
We assist companies that are expanding their businesses or making new investments to gain access to the capital market through Sukuk funding. Our priorities are to companies that are making investments which will bring positive effects to the country’s economy.
 
Also, through Sukuk, we create avenues for long-term capital to execute a wide range of much needed projects such as infrastructure projects as well large scale (affordable) housing projects to meet pressing housing shortages. 

5. Equity  Offerings

We undertake various equity based activities including the following:
 
•          Advising on and managing IPOs and other public equity sales
•          Private placements of equity shares
•          Fund formation  

6. Debt Offerings

The purpose of our debt offering services is to provide long–term capital solutions for our clientele and to expand financing opportunities for them beyond what regular (bank) financing can provide. These include:
 
•          Securitizations
•          Mezzanine debt
•          Balance sheet restructuring 

7. Advice on Mergers and Acquisitions

We undertake various corporate advisory services relating to mergers and acquisitions as follows:
 
•          Advising on and managing the sale of all or part of a company
•          Advising and managing the sale of division of a company
•          Advising and managing the acquisition of a company
•          Restructuring of distressed companies 

8. Other Activities

Other activities that FCB Capital performs include the following:
 
•          Valuation of companies. 
•          Venture Capital and Private Equity;
•          Management of pension schemes;
•          Sharia'h Advisory.
•          Investment in Sharia compliant stocks.
 
For more enquiries  email us at queries@fcb.co.ke

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