DIAMOND Trust Bank is expecting a $20 million (Sh1.74 billion) credit extension from the International Finance Corporation to drive its expansion plan ahead of its planned rights issue, chairman Abdul Samji said yesterday.
"We intend to receive the amount from the International Finance Corporation. Once the cash is out, the rights issue will kick off at the beginning of July this year." he said
He told the annual general meeting in Nairobi, that the rights issue is awaiting approval from the Capital Markets Authority and the Nairobi Securities Exchange. The bank's shareholders will get one additional share for every ten held in the rights issue.
"The markets of interest for our future regional expansions include Rwanda, Madagascar, DRC, Mozambique and South Sudan. We plan to expand at least one of these identified frontier markets over the coming twenty four months." said Samji.
The banks annual report indicates that the capital base will be used to fund asset growth and investment in the branch network in Kenya, to strengthen the groups presence and to explore investment in DTB's subsidiaries in the region.
It shows the bank recorded a growth in key business segments like lending, forex trading and transaction income such as ATM and over the counter withdrawal charges.
DTB chief executive Nasim Devji said the bank is coming up with various innovative products and services that can will enable it acquire new business deals.
"We are looking for investments that will give us capital, innovative ideas and technology that will ensure our growth,"said Nasim.