Deluxe Motors signs asset finance deal with Bank of Baroda for its trucks and buses

KENYA – Bank of Baroda, a banking and financial services company, has signed an asset finance deal with Deluxe Motors that will see the lender finance up to 90 percent of all Ashok Leyland trucks and buses.

Deluxe Trucks & Buses E.A. Ltd is the sole authorized distributor of the full range of the Ashok Leyland brand of light duty and heavy-duty trucks and buses.

In a bid to ease the financial load in the current business environment, new and repeat customers will in addition enjoy discounted loan facility fees.

“Financing has been a key driver for businesses to take up assets that will help them drive up their production and recover after a period of suppressed economic activity,” Ameet Shroff, Managing Director Deluxe Trucks & Buses E.A. Ltd said.

“We envision this partnership with Bank of Baroda helping our customers be able to get the vehicles they need from their businesses and also get a 90-day repayment holiday which will enable them to manage their cash flows.”

The Small and Micro Enterprise sector, which is the largest employer in Kenya, will be the biggest beneficiary of this unique financing partnership, which will run for the next year.

The partnership will offer customers up to 90 percent Financing on reducing the balance over a maximum tenor of 60 months. In addition, customers will receive a grace period of 90 days after the vehicle release date before loan repayment with all loan application charges waived

“This asset finance deal comes at the right time as we look to help the business grow. At Bank of Baroda, we are on a continuous journey to forge partnerships that are beneficial to our customers,” said Vinay Rathi, Managing Director Bank of Baroda, Kenya.

“We are proud to partner with Deluxe Trucks on this vehicle financing package with for the Ashok Leyland trucks. As a bank our highest priority and commitment to sustain our customers’ businesses remains unwavering.”

Private investor acquires stake in Bank of Baroda Uganda

Telecommunications Mogul Charles Mbire acquired a huge stake into Bank of Baroda through a single purchase of 23,529,400 shares worth over USh2 billion (US$0.53m).

Mbire now adds banking to his long list of investments which include Telecommunications (MTN) which is currently trading on the Uganda Securities Exchange where he boasts of a 4 percent share value worth over US$55 million.

His other investments include Logistics (FF), Revenue AssuranceInvesco, Oil services-(INVESCO), Tech, Real Estate and oil exploration. Officials at Uganda Securities Exchange are upbeat about today’s trading activities on the Stock Market. 

“To a man like Mbire, the acquisition of such a substantial stake in Bank of Baroda can only be done after a careful evaluation of the global business trends,” said an official at the stock market.

“With that kind of shares, Mbire is probably the biggest individual shareholder at the bank of Baroda.”

Bank of Baroda Uganda was initially wholly owned by Bank of India Bank of Uganda recently gave a letter of ‘No Objection’ to Bank of Baroda’s request to pay out USh25 billion (US$6.63m), which will now be effected on August 4.

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