NAIROBI, Kenya, Nov 20 – Sidian Bank has secured financing from The Dutch Entrepreneurial Development Bank (FMO), a development bank that will see the financial institution receive a US$20 million, 5-Year loan facility as part of the strategy to grow the bank to Tier 2 status.
The additional funding will support the bank’s growth plans to further its investment in affordable credit to its SME clients and privately-owned business enterprises as it works towards empowering entrepreneurs realize their potential through providing solutions for wealth creation.
“We are pleased to report that as at 30th June 2019, the bank’s assets stood at Sh24.5 Billion. This together with the loan facility from FMO, will support the growth of the bank’s assets by an additional KES. 2 billion bringing the bank closer to attaining Tier 2 status by 2022,” said Dr. James Mworia, Chairman of the Board – Sidian Bank.
The funds will be used to further the bank’s mission of empowering entrepreneurs through growing the loan book with a main focus on the SME customers, trade finance and mobile lending.
Dr. Mworia enthused: “We are delighted with the direction that the bank is taking. This is yet another positive direction that will see the bank propel to greater heights in achieving its strategic initiative to be the preferred bank for SMEs and entrepreneurs,” adding that
“Centum Investment together with the other shareholders continue to remain stanch in building a steady bank that will be the go-to bank for every business savvy entrepreneur.”
The bank has maintained a steady growth this year with a net profit of Sh43 million as at 30th June 2019. The Trade Finance business being a focus area for the bank closed at Sh14 Billion as at 30th June 2019.
To foster its growth, the bank has also invested in enhancing the digital banking channels thorough upgrade of its mobile banking and mobile lending segments which will be launched later this month.
Linda Broekhuizen, FMO Chief Investment Officer highlighted that: “We are happy to be affiliated with Sidian Bank and its shareholders in realizing a common goal of investing in supporting the growth of SMEs and entrepreneurs contributing to economic growth and development of Kenya.”
Chege Thumbi, Chief Executive Officer at Sidian Bank, further added: “This funding comes at a time when the bank has full turn around to profitability and increased asset growth which brings us closer to achieving our 5-year strategic goals. With this investment, the bank will be in a position to increase financial backing to SMEs and entrepreneurs contributing towards our aspiration of becoming the bank of choice for SMEs and entrepreneurs and in support of the government big 4 agenda.”