Diamond Trust Bank (DTB) Kenya Limited will take a 100 million dollar short-term loan from the International Finance Corporation (IFC).
It says the loan will cover lending to small and medium-sized enterprises.
IFC says the loan is part of its financing of banks to support their customers’ working capital, as the global economy recovers from the impact of the Covid-19 pandemic.
“IFC will invest up to $100 million (Sh12.2 billion) in DTB, in the form of senior debt investment,” said the corporation.
“This collaboration will enable us to enhance our long-term lending capacity, continue with our expansion plans, and explore additional opportunities in other frontier economies in Sub-Saharan Africa. Small and medium enterprises are among the most important segments of East African economies and a key driver of sustainable economic growth and prosperity.”
It says the loan will mature in 24 months, however there is an option to renew it once for a total of 36 months.
According to the IFC, Small and medium enterprises (SMEs) are a major clientele group for DTB, which serves 317,000 customers in Kenya and more than 626,000 in East Africa.
Companies that can benefit from the IFC lending are those fitting the criteria set by corporation such as having between 10 and 300 employees or annual sales of $100,000.
The loan size per borrower will range from $10,000 to $2 million.
IFC also says it seeks to boost lending to women-owned businesses.
A newsmaker, reporter and anchor at Pearl Radio, Ndalilah Sharon is witty and savvy.
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