Diamond Trust Bank eyes markets outside East Africa region

Diamond Trust Bank (DTB) announced plans to start operations in markets outside East Africa to grow its revenue streams.

DTB General Manager Alkarim Jiwa said the expansion plan has already taken shape, and they are currently readying to go into two of these markets over the next two years.

The bank, which launched its cash call yesterday whose proceeds will partly finance the expansion, said the plan is part of its Vision 2020 Plan that seeks to see DTB's presence in numerous markets across Sub Sahara Africa, including South Sudan, the Democratic Republic of Congo, Madagascar and Mozambique. It is also in plans to deepen its presence in what it calls its home markets of Kenya, Uganda and Tanzania.

The bank expects to raise Sh3.6 billion from shareholders through the sale of 22 million new shares. The rights issue was launched yesterday and closes on July 25. The new shares are expected to start trading at the Nairobi Securities Exchange on August 25.

"We are currently doing feasibility studies in two of these markets and expect to make investments in one of them in about 12 to 18 months," explained Jiwa.

"In the next seven years, DTB plans to expand its footprint to new frontier markets in Eastern and Southern Africa, but this is subject to successful completion of feasibility studies and receipt of shareholder and regulatory approval."

The additional shares have been priced at Sh165, which is over 30 per cent discounted when compared to the price of between Sh240- Sh245 in which the bank's shares trade on the Nairobi Securities Exchange.

He added that other than strengthening the bank's presence in the region through investments in new and existing subsidiaries, DTB would also invest in growing its agency banking network locally as well as diversify its clientele.

The bank at the moment largely service small and medium enterprises as well as a substantial number of retail customers, but said it is planning to recruit micro entrepreneurs across major Kenyan towns.