[2008-09-11]  Diamond Trust Bank Expansion Gets a US$25 Million Boost from IFC
The International Finance Corporation (IFC) has agreed to advance a US$25 million (Ksh.1.75 billion) loan to Diamond Trust Bank (DTB) Kenya , to prop up DTB Kenya in its expansion plan and to enable it to increase lending to small and medium enterprises across the region. IFC agreed to give a long-term subordinated loan of US$15million (Ksh.1.05 billion) to support DTB's expansion and a 10-year senior term loan of $10 million (Ksh.700 million) to promote its lending to smaller businesses. IFC will also provide advisory services to the bank on how to expand its range of products and services, enhancing risk management practices, and helping to increase its outreach to small and medium enterprises.

This collaboration is expected to enable DTB Kenya to enhance its long-term lending capacity, continue with its expansion plans and explore additional opportunities in other frontier economies in Sub-Saharan Africa. Small and medium enterprises are considered one of the most important segments of the East African economies and are key drivers for sustained economic growth and prosperity.

DTB is aiming to open-up 12 new branches in East Africa by the end of 2008, extending its branch network to 35 in the region. The bank also plans to open a new banking subsidiary in Burundi and is exploring establishment of banking operations in other African countries, including Rwanda, Madagascar and Mozambique in the next few years. Over the years, DTB Kenya has mainly focused on small and medium enterprises.

DTB has increased its capital base significantly through two rights issues (in November 2006 and November 2007, to raise Ksh.735 million and Ksh.1.6 billion respectively) in the last three years and is now one of the top ten capitalized banks in Kenya. IFC has been a shareholder in DTB since 1983 and currently holds a 9.85% stake in the bank. Other big shareholders in the bank include Aga Khan Fund for Economic Development S.A – 17.32%, Habib Bank – 10%, Barclays (K) Nominees Ltd – 9.85% and The Jubilee Insurance Co Ltd 0 – 9.29%

Source: NAIROBIST