US Investment Firm Buys $6m Equity in Kenyan Bank

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Dec 2016
Kenya, December, 07 2016 - Small and medium-sized enterprises (SME) focused lender in Kenya Jamii Bora Bank Limited has received $6 million equity investment from Chicago-based private equity fund Equator Capital Partners LLC.

Jamii Bora CEO Sam Kimani said, “We are excited to have Equator Capital Partners as a strategic partner and significant shareholder of the bank. Their investment in JBBL is a testament to our sound strategy, stable financial position and commitment to creating tangible impact and enhancing banking value offered to SMEs across Kenya.”

Kimani believes that Equator Capital’s international background and exposure will help Jamii Bora reinforce its corporate governance structures while diversifying its shareholders’ mix.

Equator Capital Partners is a fund management company that invests in private sector financial enterprises in developing and transitional economies to add to their development impact.

The investment under Equator Capital Partner’s ShoreCap II will give the firm a 15 per cent stake in Jamii Bora.

ShoreCap II is the company’s $80 million international Fund incorporated in Mauritius in 2009 which seeks equity investment opportunities in small business banks; microfinance banks; regulated microfinance non-banks; and microfinance non-governmental organizations transforming into formal regulated financial institutions in Africa and Asia.

“It is a transitional period for the Kenyan banking industry. We believe Jamii Bora Bank’s strategic focus as an SME lender strongly resonates with our investment approach to deliver inclusive financial services that promote sustainable economic, social and environmental development through private sector investments,”Equator Capital Partners Director of Africa investments Nathalie Gabala noted.

Equator Capital Partners has realized investments in Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Rwanda, Senegal, Togo and Uganda; and has active investments in Kenya, Nigeria, Zambia and Zimbabwe.

This is American private equity fund’s second investment in Kenya.

Its investment in Jamii Bora grows the bank’s capital to $37 million, placing it among the top 20 banks out of 43 in Kenya by capitalization.

Jamii Bora has a customer base of more than 360, 000 and 26 branches across Kenya.



 

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