SBM Holdings completes Chase Bank Kenya acquisition

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SBM Kenya now has a network of 59 branches across Kenya and will be offering a full range of banking products and services.

SBM Holdings Ltd announced the completion of acquisition of the carved out assets and assumption of specific liabilities of Chase Bank (Kenya) Ltd (in receivership) (CBLR) through its subsidiary SBM Bank (Kenya) Ltd (SBM Kenya). The transaction follows the Central Bank of Kenya’s (CBK) approval through Gazette Notice No. 6833 published on 6th July 2018.

  • To build the India/Mauritius/Madagascar/Kenya linkages to grow both funded and non-funded business through helping our clients to develop the Asia – Africa corridor
  • Now offers multi-jurisdiction banking as well as Non-Banking Financial relationships spanning India, Madagascar, Mauritius, Kenya, with Seychelles launching in the near future

SBM Kenya now has a network of 59 branches across Kenya and will be offering a full range of banking products and services as from Monday 20 August 2018. The Group Chairman, Mr. Kee Chong LI KWONG WING, GOSK, and the Group CEO of SBM Holdings Ltd, Mr. Andrew Bainbridge were present in Kenya for the opening of the newly rebranded SBM Bank (Kenya) Ltd, with the new brand identity of SBM which will be rolled out in a phased manner across the jurisdictions where SBM is present.

“It is a moment of great pride for us as a Group to have completed this landmark transaction slightly more than a year after we first entered the Kenyan market with the acquisition of the Fidelity Commercial Bank and it confirms our will to engage more in Kenya’s economy and society”, said the Group Chairman of SBM Holdings Ltd, Kee Chong LI KWONG WING, GOSK.

“We are very excited to start full operations as a strong top Tier 2 SBM Kenya. We look forward to welcoming our clients and providing them with competitive banking services and non-banking financial products and services as well. Moreover, we want to build the India/Mauritius/Madagascar/Kenya linkages to grow both funded and non-funded business, through helping our clients to use and develop the Asia – Africa corridor that we are part of facilitating”, declared Andrew Bainbridge, Group CEO.

This transaction marks a significant step for the SBM Group, both in its international expansion strategy and its stabilization and integration process on the Kenyan market. It also highlights SBM Group’s contribution to the Kenyan financial sector and in particular, restoring confidence in a sector that thrives on stability.

The transaction will have a positive impact on the Kenyan financial sector. Customers will have access to new and innovative banking services offered by SBM Bank (Kenya) Ltd and on a broader basis will benefit from cross-selling opportunities provided by the different clusters of SBM Group.

The completion of this transaction comes as a great relief for depositors and borrowers, as depositors will have access to 50% of the funds transferred to SBM Bank (Kenya) Ltd through Savings and Current accounts. The remaining 50% of the transferred moratorium deposits will be available equally over the next 3 years and will earn interest during this period. In addition, customers will also have the option of moving available funds to either savings accounts or fixed deposits. SBM Bank (Kenya) Ltd will offer attractive negotiated deposit rates for clients wishing to hold their funds in fixed deposits. The existing relationship touchpoints in the bank will be retained and we will continue to be a strong relationship bank.

Borrowers will have access to full banking operations on their accounts with SBM Kenya. The normal operations on the transferred loan accounts will resume and they will be informed accordingly. Borrowers will also have access to a full product suite of credit facilities, trade finance lines and non-credit services. SBM Kenya will also offer revamped customer service at its branches with added products across Retail, SME and Corporate segments.

SBM Kenya has taken on the vast majority of employees ensuring continuity of employment. They will have full access to staff benefits and have wider internal mobility given the wider branch network and the expanded SBM Kenya business and operations structure.

This successful transaction of SBM Group delivers a first of its kind landmark deal that will stand as a reference for future resolutions in Kenya. The SBM Group has committed an additional capital infusion of $60 million for this portfolio purchase, taking its total investment to $86 million in Kenya. SBM Kenya moves up from a tier 3 bank to a top tier 2 bank with a significant asset base. The Group will now be able to offer its clients multi-jurisdiction banking as well as Non-Banking Financial relationships spanning India, Madagascar, Mauritius, Kenya, with Seychelles launching in the near future. SBM Kenya looks forward to building strong and trusted relationships with other banking and non-banking financial institutions in Kenya.