DFCU Receives $50 Million Loan From ‘Arise’ To Boost Banking Sector
Following its crane bank take over recently, DFCU bank has received a loan of $50 million (Shs179.25 billion) from Arise, an investment company based in Cape Town.
Dfcu Bank recently concluded an agreement with the Bank of Uganda to purchase the assets and assume the liabilities of Crane Bank Limited (CBL), which was under receivership.
The acquisition of CBL will allow dfcu Bank to diversify its service offerings to its clients and make banking more accessible to the public.
According to Arise Chief Executive Officer, Deepak Malik, the money is to help dfcu recapitalise after taking over the country’s biggest bank, Crane bank.
“The facility was availed on commercially-agreed terms, to enable commencement of the recapitalisation of dfcu Bank in the short term, while complying with regulatory capital thresholds” he said.
While giving his comments on the deal, dfcu Bank Managing Director, Juma Kisaame said; “The acquisition gives us the impetus to achieve our strategic objective of building a robust retail operation with multiple delivery channels whilst consolidating our position as a key player in the SME market segment.”
He added that this will also support their goal of promoting financial inclusion in Uganda.
Arise is a leading African investment company that partners with sustainable, locally-owned Financial Services Providers in Sub Saharan Africa.
The company was founded by three cornerstone investors namely Rabobank, Norfund and FMO and currently manages assets in excess of USD 660 million and is operational in over 10 countries.
Arise officially launched in South Africa on 2 February 2017 and its aim is to grow its current assets in excess of USD 1 billion.