According to Capital News, the financing, a 5-Year loan facility, is part of the strategy to grow the bank to Tier 2 status.
It will also work towards empowering entrepreneurs realize their potential through providing solutions for wealth creation.
Dr. James Mworia, Chairman of the Board, Sidian Bank, said; “We are pleased to report that as at 30th June 2019, the bank’s assets stood at Sh24.5 Billion (US$245m).
“This together with the loan facility from FMO, will support the growth of the bank’s assets by an additional Ksh2 billion (US$20 million) bringing the bank closer to attaining Tier 2 status by 2022,” said
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,”
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.”
The bank has maintained a steady growth this year with a net profit of KSh43 million (US$0.43m) as at 30th June 2019. The Trade Finance business being a focus area for the bank closed at KSh14 Billion (US$140m) 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.