NAIROBI, Kenya, Aug 20 – SBM Holdings has completed the last step of the acquisition of carved out assets and liabilities of Chase Bank Kenya Ltd (in receivership) through its subsidiary SBM Kenya.
The SBM Group has further committed an additional recapitalization of $60 million (Sh6b) taking its total investment to $86 million in Kenya. As a result, SBM Kenya moves up the ladder from a tier 3 bank to a top tier 2 bank with a significant asset base.
Depositors will now have access to 50 per cent of the funds transferred to SBM Bank (Kenya) through Savings and Current Accounts.
The remaining 50 per cent of the transferred moratorium deposits will be available equally over the next 3 years and will earn interest during this period.
SBM Holdings chairman Kee Chong Li Kwong Wing, who presided over the opening of the newly rebranded SBM Bank (Kenya) Ltd, with the new brand identity of SBM, said the landmark transaction was a great pride for the group.
“We first entered the Kenyan market with the acquisition of the Fidelity Commercial Bank and it confirms our will to engage more in the Kenyan’s economy and society,” said Kwong Wing.
“Moreover, we want to build the India/Mauritius/Madagascar/Kenya linkages to grow both funded and non-funded business, through helping our clients to use and develop the Asia – Africa corridor that we are part of facilitating,” he added.
Central Bank of Kenya Governor Dr. Patrick Njoroge has described the transition as a sign of financial stability.
“The objective here was to maximize the returns for the depositors, creditors and other stakeholders. That to me is another first. The resolution of Chase is a major vote of confidence in the financial sector so what happens now is there is a huge stability that is a shot in the arm for the financial sector,” said Njoroge.
The Governor also noted that this is the first time that a successful carve-out of this nature has been carried out in Africa.
“This is one small step for depositors, but a giant leap for the stability of the financial sector.”