[Kenya] Sidian Bank’s shareholders approve raising $15 million in additional share capital to fund growth
Sidian Bank’s shareholders have approved the raising of additional share capital of, $15 million, Ksh. 1.5 billion via a rights issue.
The capital will be utilized to fund growth initiatives to drive the achievement of the Bank’s strategic goal of becoming a Tier 2 bank by 2022.
The additional capital will support the Bank’s growth plans including further investment in its trade finance business, which in 2017 registered significant growth of over 600%.
The trade finance portfolio increased from KES. 896 million in 2016 to KES 6.6 billion by close of 2017. Other targeted areas are the loan book growth where the Bank will continue enabling entrepreneurs through lending to them.
Further, the capital will fund key strategic investments in 2018 including upgrading the Bank’s T24 core banking system to enhance customers’ experience and drive efficiencies; a new robust internet banking platform that will accord customers’ increased convenience, reliability and choice to access the Bank’s products and services from anywhere; and opening of a new branch in Westlands that will increase the reach of its services to current and potential customers.
Speaking during the announcement Mr. Chege Thumbi, Sidian Bank C.E.O. said that “The business growth envisaged through this investment will lead to increased profitability driven by non-funded income from digital banking and trade finance. The increased capital will facilitate the exploration, innovation and creation of solutions for wealth formation for our customers”.
Centum Investment Company Limited, the Bank’s largest shareholder, has taken up its full rights totaling KES 1.1 billon. Dr. James Mworia, Chairman, Sidian Bank, emphasized the shareholder’s commitment to the Bank, which forms part of their key eight sectors in which they develop, scale and grow investment capabilities as part of their 3.0 strategy”.