Diamond Trust Bank Receives Ksh 7.5Bn from AfDB for SMEs

Diamond Trust bank Kenya limited will receive KSh7.5 billion from the African Development Bank (AfDB) to support Small Micro Enterprises and emerging corporates in East Africa.

This is after the board of directors of the AfDB approved a US 75 million package comprising of US 50 million line of credit and US 25 Million subordinated debt to the bank.

The fund will target businesses involved in value addition in the trading, manufacturing, transport and construction.

“In so doing it will enhance job creation and facilitating financial access to business,” read a statement from AfDB.

“The sub-debt will bolster DTB’s balance sheet by enhancing its Tier !! capital, which is a crucial catalyst for the bank’s expansion,” it read.

AfDB says the intervention will contribute to the bank’s efforts to broaden access to financing by businesses in Kenya and also facilitate expansion to markets outside the country.

This is in line with AfDB’s ten-year strategy 2013-2022 to industrialize Africa, integrate Africa, Feed Africa and improve the quality of life for the people of Africa.

“It will help to increase enterprise development and competitiveness through expansion of the economic base.”

Diamond Trust Bank posted a 11.4% growth in core earnings per share to Kshs 20.0 in Q3’2016 from Kshs 17.9 in Q3’2015.

The growth in earnings was despite a 44.4% increase in total operating expenses which outpaced a 29.2% growth in total operating revenue.

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