UT Bank Ltd and Amethis Finance, a Paris based Private Equity Firm, on Thursday announced a USD 10m subordinated loan agreement, subject to approval from the Bank of Ghana.
The funds will support UT Bank's capital base allowing it to efficiently grow its lending to the SME sector. UT Bank’s 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.
Commenting on the transaction, Mr. Prince Kofi Amoabeng, Chief Executive Officer of UT Bank expressed his delight in having Amethis Finance join UT Bank’s list of international partners. He further noted that Amethis brings to the table its vast experience, as well as exposure to its connections across Africa and the Mediterranean.
“This additional capital injection is timely and will enable the bank to reach out to more SME customers as well as extend the tenures of our loans. This will allow us to have a more sustainable impact on the middle level business who form the bulk of our client base”, Pearl Esua-Mensah, Deputy Managing Director, added
Mr, 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.
“We have been impressed by the sound performances posted by the Bank as well as by its innovative approach towards SME lending” added Laureen Kouassi-Olsson, Investment Director of Amethis.
