Chase Bank secures Sh4bn for lending to small companies
Shareholders of the bank also raised Sh400 million in 2012 through a rights issue. PHOTO | FILE
What you need to know:
The amount will boost Chase Bank’s long-term lending to small and medium enterprises.
Early last year the bank also received Sh900 million from Paris-based Amethis Finance and another Sh500 milion from a European private equity fund.
Chase Bank has secured a Sh4 billion ($45.2 million) long-term loan from the Netherlands Development Bank for onward lending to SMEs.
The amount, which is in addition to a Sh1.6 billion deal signed with Microfinance Enhancement Facility SA last month, will boost Chase Bank’s long-term lending to small and medium enterprises.
Deputy chief executive Paul Njaga said the lender is focused on women, youth and agriculture. The lender was recently named ‘‘the best SME bank’’ in Kenya by the Banker Africa Awards.
It also won the ‘‘best SME bank 2013’’ at the Banking Awards organised by Think Business. In October last year Chase Bank secured a Sh1.5 billion injection from strategic investors.
Early last year it also received Sh900 million from Paris-based Amethis Finance and another Sh500 milion from a European private equity fund.
Shareholders of the bank also raised Sh400 million in 2012 through a rights issue.
“Our balance sheet has been doubling every 18 to 24 months which means we need more capital to support the growth,” said Mr Njaga after the capital injection by strategic investors last year.
The bank owns Rafiki DTM and stockbrokerage Genghis Capital. Chase Bank is privately owned by about 50 shareholders.
The lender prefers to have a number of strategic investors on its shareholders’ register instead of working with one, arguing that it brings diversity on its board.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
