SIDIAN BANK LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Sidian Bank Limited ("Sidian") is a full-service commercial bank based in Nairobi, Kenya with majority shareholder Centum Investment Company Limited. It was originally established in 1984 as an MFI NGO under the name K-Rep. Per late 2014, Centum became the majority shareholder of the bank driving its strategy towards a full-fledge SME focused bank.
What is our funding objective?
The proceeds of the loan will be used by Sidian to finance the SME portfolio growth.
Why do we fund this investment?
FMO aspires to build a strong relationship with Sidian along the mutual strategy of sustainable commercial development through financing MSMEs in Kenya's real economy, thereby enabling those companies to invest in their businesses, create jobs and contribute to the overall economic development and growth.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category B in accordance with FMO’s Policy. There are no IFC PS Triggered Transactions in the client's portfolio and the high-risk sectors represent less than 5% of the total portfolio. The average loan size is USD 30k, which confirms the bank’s exposure is mostly related to the small SME segment.
- Website customer/investment
- http://sidianbank.co.ke/
- Region
- Africa
- Country
- Kenya
- Sector
- Financial Institutions
- Publication date
- 9/10/2019
- Effective date
- 11/7/2019
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B