Sidian Bank has secured Sh1.1 billion from Switzerland-based Impact Investment EMF Microfinance Fund (EMF) for onward lending to Micro, Small and Medium Enterprises (MSMEs) in Kenya.
The facility will support the bank in its focus on providing credit to Micro, Small and Medium-Sized Enterprises accelerating realisation of key business initiatives.
“The capital comes at an opportune time when the bank is expanding and investing in innovative digital and client tailor-made,” said Sidian chief executive officer Chege Thumbi.
“The capital will enhance the bank’s regulatory capital and further boost its lending capacity to Micro and SME solutions,” he added.
According to Thumbi, the Bank has experienced significant growth with total assets standing at over Sh.41 billion by close of 2021 attracting the interest of DFIs and international partners keen on growth of the Micro and SME sector.
“We are particularly careful in our choice of subordinated debt partners, as we recognise 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.
EMF is advised by Enabling Qapital, a Swiss-based Asset Advisor.
The Switzerland-based 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.