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DTBK Tier II Inc

September 4, 2014



Region : Sub-Saharan Africa Company name : DTB Kenya Country : Kenya Sector : O-AA - Commercial Banking - General Department : Global Industry, Financial Markets Environmental category : FI2 Status : Promotion Project Description : The proposed project entails an IFC investment of $20 million, in the form of a subordinated loan that qualifies as Tier II Capital, to be extended to Diamond Trust Bank Limited (DTBK). The above facility will be utilized to: (i) strengthen the bank s capital base; and (ii) help the bank to expand its lending activities to SMEs. Date SPI disclosed September 2, 2014 Projected board date October 6, 2014 Last Updated Date September 3, 2014 Project Sponsor and Major Shareholders of Project Company : Diamond Trust Bank Kenya Limited (DTBK) is incorporated as a public company which is listed on the Nairobi Securities Exchange. The bank provides a wide range of corporate, retail and commercial banking services. Aga Khan Fund for Economic Development (AKFED) is the main sponsor of DTBK, and along with its affiliates are the principal shareholders in DTBK with approximately 41.57% shareholding as at 31 July 2014. IFC is also a 4.95% shareholder. Total Project Cost and Amount and Nature of IFCs Investment : The total project cost is estimated at US$20 million, which will be fully provided by IFC. Therefore, IFC s total investment is proposed to be $20 million. It will be in the form of a long-term subordinated loan (or C loan) that qualifies as Tier II capital, to be extended to DTBK, on IFC s own account. Location of Project and Description of Site : DTBK is headquartered in Nairobi, Kenya. It has a network of 51 branches in Kenya. Its subsidiaries in Tanzania, Uganda and Burundi have 20, 29 and 4, respectively, bringing the group s total network size across East Africa to 104 branches. Expected Development Impact : The Project is expected to have a high development impact in the following measurable areas: 1-Increasing credit availability to the SMEs and Very Small Enterprises (VSEs); 2- Supporting job creation by financing the SME and VSEs. The VSEs are a high impact sector, which has low access to finance. Financing this sub-segment helps create opportunities to achieving more balanced growth; 3. Capacity building to help the bank to service VSEs on a sustainable basis; and 4. Demonstration effect/market transformation through DTBKs continued lending to the target segment beyond the life of the Project. IFCs Expected Role and Additionality : The Project is expected to have the following additionality: 1-Providing long-term US dollar - denominated subordinated debt which is not readily available locally; 2-Support DTBK to continue to meet higher capital adequacy requirements which have been introduced by the Central Bank of Kenya; Environmental & Social Categorization Rationale : This project has been classified as FI-2 according to IFC s Environmental and Social Review Procedu

Project completion date : 2015-12-31 12:00:00

Major organization : DIAMOND TRUST BANK KENYA LIMITED

Address : DTB Centre, Mombasa Road P. O. Box 61711-00200 Nairobi



Country :Kenya

Url : http://www.dtbafrica.com

Financier : International Finance Corporation (IFC),

Financier address : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 United States Website : http://www1.ifc.org Tel : (202) 473-3800 Fax : (202) 974-4384


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Source: TendersInfo (India)


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