German Financial Institution, DEG, has increased its shareholding in UT Bank from 12% to 12 and a half percent after a 5 million dollar loan facility to the bank.
UT holdings’ stake in the bank has dropped marginally to about 41%.
In May this year, UT received the cedi equivalent of 10 million dollars as an equity investment from DEG giving up 12% of the company’s shares to the German institution.
Deputy Managing Director of UT Bank, Pearl Essua Mensah told Citi Business News
, the bank will use the fund to service the SME sector.
She said, “we have always maintained that our focus is for the SME market.
Now, what it means is that when we strengthen our balance sheet, we will be able to give more facilities to SME’s and partnerships with institutions like DEG also makes it easier for us to have other partnerships internationally.”
She also noted that the partnership will enable them serve the SME’S better.
Meanwhile, the Director of DEG, Karl Weinfuitner explained to Citi Business News
, his outfit committed more funds to the UT bank because “it is the right bank for Ghana to support small and medium size companies and we have a lot of confidence in the management of UT Bank, and we believe that our partnership would support growth of private small scale business.
The other major shareholders, the International Finance Company (IFC) and Africa Capitalization Fund, AFC together own close to about 18 percent while Investec Public Fund which owns about 9.6 percent while the general public holding close to 20%.
By Nana Boakye-Yiadom/Citifmonline.com/Ghana