Danish fund injects Sh1.2b into Sidian BankThe Sidian Bank has received a much-needed Sh1.2 billion boost from Danish investment firm Investment Fund for Developing Countries (IFU).The cash will come in handy in helping the lender raise its core capital eroded over the last two years of loss-making. Formerly called K-Rep, the lender’s core capital declined from 23.1 per cent in 2016 to 13.9 per cent in the third quarter of last year. Just last year, Sidian raised an extra Sh1.1 billion from its principal shareholder Centum, which owns a 73 per cent stake in the lender. IFU’s tier two capital will see it carve out about 20 per cent stake in the bank, making it the second largest shareholder in three years. Shareholders approved a rights issue of Sh1.5 billion and a tier 2 capital raise of Sh1.2 billion, which in combination will support the growth of its assets by an additional Sh10 billion to Sh35 billion.

Source: Standard Digital March 07, 2019 21:22 UTC