Kenyan lender Sidian Bank has received a $20 million loan to support its growth strategy as it seeks to break into tier 2 status by 2022.
The 5-year loan secured from the Dutch Entrepreneurial Development Bank (FMO) is intended to support the bank’s growth plans that includes increasing lending to SME clients and private-owned business enterprises.
The loan will enable Sidian Bank, that is majority owned by Centum, expand its SME clientele having curved a niche in trade finance solutions over the past three years.
The funds will also go to furthering the bank’s mission of empowering entrepreneurs through growing the loan book with a focus on the SME, trade finance and mobile lending.
"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," said James Mworia, Sidian Bank chairman.
Sidian Bank, whose assets stood at $237.9 million as of June 2019, has the ambitions to become a tier 2 lender over the next three years, a fete that comes closer with the additional funding. By end of June, its next profits stood at $417,538.
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.
"This funding comes at a time when the bank has full turnaround to profitability and increased asset growth which brings us closer to achieving our 5-year strategic goals," said Chege Thumbi, Sidian Bank chief executive.
FMO is a leading impact investor that supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.
The bank believes that a strong private sector leads to economic and social development and has a close to 50-year proven track-record of empowering people to employ their skills and improve their quality of life.FMO focuses on three sectors that have high development impact namely financial institutions, energy and agribusiness, food & water.With a committed portfolio of $10.7 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally.