Sidian Bank has received a Ksh.1.1 billion loan from Switzerland-based Impact Investment EMF Microfinance Fund (EMF).
The loan facility will be channeled to financing to Small and Medium Enterprices in Kenya.
“The funds will therefore accelerate realisation of these key business initiatives. The Bank has experienced significant growth with total assets standing at over Ksh.41 billion by close of 2021. The additional capital will enhance the bank’s regulatory capital and further boost its lending capacity to Micro and SMEs,” said Sidian Bank CEO, Chege Thumbi
Sidian Bank has been on a steady growth trajectory attracting the interest of Direct Foreign Investments (DFIs) and international partners keen on the growth of the Micro and SME sector.
EMF has a track record of providing access to capital and promoting financial inclusion to people in developing economies.
The Fund supports promising, responsible, profitable and sustainable Micro, Small and Medium Enterprises, financing Intermediaries that focus on achieving social impact.
“We are particularly careful in our choice of subordinated debt partners, as we recognize that we will be in that relationship for a long time. Sidian Bank has exceeded all of our investment criteria for this product,” said Chuck Olson, Managing Partner at Enabling Qapital.
The lender’s credit support for Kenyan SMEs now totals to Ksh.2.6 billion since July last year.
This is after it secured Ksh.990 million loan from Netherlands based social impact investor, Oikocredit to finance SMEs.
In July, African Guarantee Fund (AGF) also issued a Loan Portfolio Guarantee to Sidian Bank worth Ksh.515,900,000 to boost financing to SMEs.