Germany's DEG takes $10 mln equity in Chase Bank
19 November 2013, 09:26
Nairobi - DEG, a subsidiary of German development bank KfW, has bought an unspecified amount of shares worth $10 million in Chase Bank, one of Kenya's fastest-growing lenders, the Kenyan bank said.
Kenyan banks have caught the eye of foreign investors attracted by fast-growing east African economies. Many of the banks have also began ambitious expansion plans within the region.
Officials expect the Kenyan economy to expand by 6 percent this year, up from 4.6 percent in 2012.
Chase, which focuses on lending to small and medium-sized enterprises, will use the additional equity to fund expansion, including new outlets around the country, it said in a statement seen by Reuters on Monday.
Other investors in Chase include Paris-based investment firm Amethis Finance and Zurich-based responsAbility Participations AG, Chase said.
Chase has posted compounded annual balance sheet growth of above 50 percent in the past six years, it said, putting it among the fastest-growing banks in the industry. It has assets of 62 billion shillings ($717.18 million).
($1 = 86.4500 Kenyan shillings)