DIAMOND TRUST BANK RECEIVES 50 MILLION DOLLARS COVID-19 SME SUPPORT FROM IFC

DIAMOND TRUST BANK RECEIVES 50 MILLION DOLLARS COVID-19 SME SUPPORT FROM IFC

By Patience Chemjor

Diamond Trust Bank Kenya Limited (DTB)

signed an agreement for a $50 million loan with

IFC, a member of the World Bank Group, to

support its borrowers who have been affected

by the COVID-19 pandemic, especially small

and medium enterprises (SMEs).

The funds are being provided under IFC’s global

$8 billion fast-track COVID-19 facility, launched

in March to protect jobs and support

businesses with working and trade-related

capital as economies grapple with the

challenges of the pandemic.

Nasim Devji, Group CEO and Managing Director

DTB, said, “As an SME bank, we are aware that

these businesses are among the hardest hit by

the fall-out of the pandemic. This facility will

enable us to support SMEs to address their

cash flow challenges, which is a key concern as

businesses need easy access to short-term

liquidity.”

In April, the Central Bank of Kenya reported that

SMEs had been hit harder than larger

companies by COVID-19 in part due to their

challenges accessing capital. The World Bank

Kenya Economic Update projects that Kenya’s

gross domestic product will fall this year due to

the negative impacts of COVID-19, underscoring

the need to support the country’s smaller

businesses.

“We urge our SME borrowers to take advantage

of the facility to ensure their survival during

these tough times, as we remain committed to

their development,” Ms Devji added.

Manuel Moses, IFC Country Manager for Kenya,

said, “IFC’s partnership with DTB Kenya is part

of our strategy to help businesses in Kenya

manage the impacts of COVID-19 so they can

continue providing essential goods and

services and maintain jobs. IFC is committed to

helping countries across Africa meet the unique

challenges of COVID-19 and also speed the

process of recovery.”

IFC has earmarked $2 billion of its $8 billion

COVID-19 facilitY to the IFC Working Capital

Solutions Program to provide funding to

emerging-market banks so they can help

businesses shore up their working capital

needs.

The IFC COVID-19 facility will support existing

clients in the infrastructure, financial,

manufacturing, agriculture, health, and other

sectors vulnerable to the pandemic.

Diamond Trust Bank Kenya Limited (DTB) is a

leading regional bank listed on the Nairobi

Securities Exchange (NSE). An affiliate of the

Aga Khan Development Network (AKDN), DTB l

has operated in East Africa for the past 75

years. DTB’s focus on the Small and Medium

Enterprises sector and commitment to

enhancing convenience for customers through

innovative digital solutions has driven the

Bank’s growth in recent years. DTB has been

ranked among the top 100 banks and top 250

businesses in Africa. For more information,

please e-mail mkt@dtbafrica.com.

IFC—a sister organization of the World Bank

and member of the World Bank Group—is the

largest global development institution focused

on the private sector in emerging markets. We

work in more than 100 countries, using our

capital, expertise, and influence to create

markets and opportunities in developing

countries. In fiscal year 2019, we invested more

than $19 billion in private companies and

financial institutions in developing countries,

leveraging the power of the private sector to

end extreme poverty and boost shared

prosperity.