Skip to main content

UT Bank secures US$10 million loan from Amethis Finance



By: Fred Yaw Sarpong
UT Bank Limited has secured a US$10 million subordinated loan agreement from Amethis Finance, a Paris based Private Equity firm. However, the loan is subject to approval from the Bank of Ghana, the regulator of the banking industry.
The US$10 million loan will support UT Bank’s capital base allowing it to efficiently grow its lending to the small and medium enterprise (SME) sector in the country.
In an interview with the Chief Executive Officer (CEO) of UT Bank, Prince Kofi Amoabeng in Accra last week after a meeting with the Amethis Partners, he said this loan will not affect the interest some local entity’s has in the UT Bank.
He stated that the IFC loan, which was equity in a way takes more control on local activities, however, he added that the Amethis money is a debt and it does not control the shareholding structure of the bank.
This is debt partners and seven years time we supposed to pay back the money. Maybe we will ask them to extend it rollover so that it can grow bigger, but it has nothing to do with the shares of the bank,’ said Amoabeng.
UT Bank will pay within seven year period at an interest of 6% per annum. UT Bank boss explained that the reason why they went for the external loan is that, it is cheaper than raising money locally, especially at when one will be paying about 25% interest rate compared to 6% from outside Ghana.
He also said that the loan will reduce the bank cost of doing business, which will help them have minimum or limited base rate, which is the determine factor of product and service to their clients.
He said that bank is comfortable in going for such loans because if UT Bank has not positioning itself well, there is no way they can secure such loans from international partners. ‘This alone shows that UT Bank has a good track record with a good projection for the future,’ Amoabeng added.
He stated that it is good to have these kinds of long term loans because it helps them to grow, expand and extend credits or loans to their clients.
The bank strategy is to strengthen its positioning in the SME market in Ghana and develop its retail footprint with branch expansions and the use of technology to attract cheap deposits.
Laurent Demey, Managing Partner of Amethis Finance said the transaction fits perfectly with Amethis strategy to support mid-size fast growing local banks, targeting institutionalization and market expansion with a strong retail and SME footprint.
The Investment Director of Amethis, Laureen Kouassi-Olsson said they have been impressed by the sound performance posted by the UT Bank as well as by its innovative approach towards SME lending.

Comments

Post a Comment

Popular posts from this blog

Shortage of weighing cards hit major hospitals in Accra

By: Fred Yaw Sarpong- Daily Express There is scarcity of Child Health Records Book (weighing cards), in some major public hospitals in the capital, information reaching the Daily Express indicates. Checks by this paper revealed that while some of the hospitals have being encountering the shortage for about a year now, others started experiencing it six months ago. In place of the Child Health Record Book (weighing card), the nursing mothers are given a single card on which information of children are recorded on it. Those hospitals identified are the Korle Bu Teaching Hospital, Korle Bu Polyclinic, Kaneshie Polyclinic, Adabraka Polyclinic and the Ridge Hospital. At the Korle Bu Teaching Hospital, the nursing mothers are given yellow cards in place of the weighing cards. The Public Relations Secretariat at the Korle Bu Teaching Hospital said such information has not come to their notice and for that matter they cannot comment on it. “We do not have some
Post a Comment
Read more

90 African Journalists entertain by Disney Africa

By: Fred Yaw Sarpong- Daily Express Mauritius Disney Africa welcomed 90 journalists from across Africa to their first ever showcase to media from the continent, at this year’s Multichoice Africa Content Showcase Extravaganza. On Thursday 3 September, guests received a Disney Movie ticket which gained them entry to the special outdoor screening, set under the stars on the lawns of the idyllic Outrigger Beach Resort in Mauritius . After receiving their own Disney picnic basket and blankets, full of delicious treats and filling food, the guests made their way to the seating area, replete with comfortable chairs and loungers. Once the Disney fans were settled, the vast outdoor screen lit up and the evening’s festivities were well under way. A welcome speech by Deirdre King, Head of Marketing for the Walt Disney Company Africa, preceded the screening of two animated shorts. The first, the Academy Award-nominated Get a Horse, featured Disney favourites like Mickey, Minni
Post a Comment
Read more

ABL launches chibuku super in Bolgatanga

By: Fred Yaw Sarpong sarpong007@gmail.com Accra Brewery Limited (ABL) has officially launched the Chibuku Super drink at Bolgatanga in the Upper East region with the aim of reaching a lot of customers. Mr. Thomas Nii Ponku, Supervisor in charge of Chibuku Super at ABL told Daily Express that the management decided to launch the Chibuku Super drink in the Upper East region because they’ve realized it is similar to a traditional drink in the region. “Chibuku is like a well developed pito, a traditional drink made from fermented millet or sorghum in the Northern part of Ghana. So the idea is to provide them with similar drink,” he added. Mr. Nii Ponku disclosed this when members of the Institute of Finance and Economic Journalists (IFEJ) toured the facility of ABL to acquaint themselves with the expansion project at the factory. He mentioned that after a feasibility study, they realized there is a potential market for the product in the northern part of Ghana
Post a Comment
Read more