Sidian Bank is expected to receive a Sh2 billion loan from a Dutch lender in its attempt to grow the sprouting bank to tier two status.
“Sidian Bank has secured financing from The Dutch Entrepreneurial Development Bank (FMO), a development bank that will see the bank receive USD 20 million 5-Year loan facility as part of the strategy to grow the bank to tier two status,” announced the bank.
In a press release, Sidian bank said that the loan will help grow its assets which by the first half of the year stood at Sh24.5 billion.
“With the loan facility from FMO, will support the growth of the bank’s assets by an additional Sh2 billion bringing the bank closer to attaining Tier two status by 2022,” read the statement.
The bank added that additional funds will facilitate its investments to offer affordable loans to its client and private business enterprises.
It also aims at enhancing its digital banking which will upgrade its mobile banking lending channels.
“The affordable credit will complete the very successful trade finance solutions that the bank has been offering in the last three years,” read the press release.
Sidian Bank’s Chairman Dr. James Mworia believes the move is on a positive note which will help in its progress of being recognized as the preferred bank for Small and Medium Enterprises SMEs in Kenya.
“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 entrepreneurs,” said Mworia.
The loan, however, comes at a time when Sidian Bank is enjoying a steady growth with a net profit of Sh43 million by June 2019.
The bank’s Chief Executive Officer Mr. Chege Thumbi hailed the time in which the loan has come through saying that it will help them achieve their fiver 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 and in support of the government big 4 agenda.”
FMO through its Chief Investment Officer Linda Broekhuizen said that the loan was out of mutual interest since they are behind the growth of small and medium enterprises.
“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, said Broekhuizen.