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The bank says Sh3 billion will be injected from strategic investors while the rest will be raised through a Rights Issue/FILE

Kenya

Jamii Bora to raise Sh3.8bn capital by year end

The bank says Sh3 billion will be injected from strategic investors while the rest will be raised through a Rights Issue/FILE

The bank says Sh3 billion will be injected from strategic investors while the rest will be raised through a Rights Issue/FILE

NAIROBI, Kenya, Jul 5 – Jamii Bora Bank Limited plans to raise Sh3.8 billion capital in the second half of 2016.

The bank says Sh3 billion will be injected from strategic investors while the rest will be raised through a Rights Issue.

The management expects this to take place before close of the year.

The lender recently raised Sh1.2 billion in form of convertible debt from Equator Capital Partners and Progression Capital Africa Limited which is expected to be converted before November 2016.

The firm wants to use the funds to grow its rural and urban network, invest in technology and innovations and also increase its capacity to lend in the SME sector.

The lender’s core capital and total capital to total risk weighted assets thinned to 15.2 percent and 16.0 percent in the first quarter of 2016 from 22.0 percent and 22.8 percent, remaining above the minimum statutory ratio by 4.7 and 1.5 percentage points respectively.

The third tier bank currently has over 400,000 customers and a network of 26 full-fledged branches and three satellite branches across the country.

The lender recorded a 56 percent rise in its loan book to Sh10.48 billion in the first quarter of 2016 with deposits of Sh10.55 billion during the period.

The lender’s asset base hit Sh17.28 billion during the period and intends to increase its asset base to Sh25 billion by remaining focused on addressing the needs of the enterprises.

“The Small and Medium Sized Enterprise (SME) sector, which is estimated to account for over 80 percent of employment opportunities, has grown remarkably over the last few years and is expected to maintain the same trend,” the management says.

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