Diamond Trust secures Sh7.5bn AfDB funding for SME lending
A customer at a Diamond Trust Bank ATM machine in Nairobi. PHOTO | FILE
Diamond Trust Bank Kenya (DTB) has secured a $75 million (Sh7.5 billion) funding, including a $50 million line of credit for on-lending and $25 million subordinated debt, from the African Development Bank (AfDB).
The AfDB said its board approved the package in support of small and medium enterprises (SMEs) and emerging corporates in East Africa.
It will provide financing to SMEs and local corporates involved in value-addition in trading, manufacturing, transport, construction and other sectors.
On the other hand, the sub debt is expected to bolster DTB’s balance sheet by enhancing its Tier-II capital.
“This intervention by the African Development Bank will contribute to DTB’s efforts to broaden access to financing by businesses in Kenya and also facilitate expansion to markets outside the country,” said AfDB in a statement.
The lender said the funding would also spur DTB’s endeavours to complement the efforts of various partners and players supporting the economic transformation of East African economy.
DTB has a diverse shareholding with institutional investors including the Aga Khan Fund for Economic Development, Habib Bank Limited and retail shareholders.
The bank offers a variety of conventional, as well as digital, banking products and services and has a broad client base in different sectors including telecoms, manufacturing, trading and agriculture.
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