Tamkeen signed an agreement with Bahrain Development Bank (BDB) to add BD10 million to the Enterprise Financing Portfolio as part their joint objective to ensure the availability of low-cost financial solutions for SME enterprises in Bahrain, which is under the framework of Tamkeen’s SME financing program, one of the key initiatives launched by Tamkeen.
The program is offered by Tamkeen through a number of leading local banks, including BDB, whereby Tamkeen subsidizes 50% of the profit on the loan amount. With the agreement, the total value of BDB and Tamkeen’s
Enterprise Financing Portfolio increases to BD 110 Million, and the number of beneficiaries is expected to reach around 3760 beneficiaries. The agreement will also bring the total value of Tamkeen’s Enterprise Financing Portfolio to BD 220 million.
To-date, more than 5,200 enterprises in the Kingdom of Bahrain have been able to get much-needed capital funds to finance their development and growth through the program, nearly 1305 of which are business start-ups.
The joint Enterprise Financing Portfolio between Tamkeen and BDB has served 3410 businesses alone as of February 2013, with another 350 expected to benefit from the announced increase in the portfolio. Commenting on this announcement, Tamkeen’s Senior Manager for Private Sector Support, Mr. Mohammed
Bucheery, said: "In line with Tamkeen’s objective to support the private sector and to enhance growth, development and sustainability, we are pleased to continue our successful partnership with Bahrain Development Bank to provide more opportunities for SMEs and entrepreneurs in Bahrain with access a wide range of flexible financing solutions.
The Enterprise Financing Portfolio has been instrumental in bridging the financing gap previously faced by SME’s through providing financial support that enables institutions to fully fledge their development strategies and plans."
"The increase in the finance portfolio reflects the success of the strategic partnership between the Bahrain Development Bank group and Tamkeen on the level of funding and the development of SMEs as well as improving the performance of these businesses, which makes up more than 90% of businesses in the Bahraini market. This agreement also reflects the success and accessibility of the funding program to the various businesses in industry and service sectors," said Mr. Nedhal Saleh Al-Aujan, CEO of Bahrain Development Bank.
"What distinguishes this programme is the facilities and benefits that the small and medium enterprises in the Kingdom of Bahrain get, whether it is financial or non-financial services, provided by the Bahrain Development Bank group, which includes advisory services, training and business incubation services. " He added. All enterprises in Bahrain with a valid CR can apply to the program.
The financing amount can range from BD 5,000 up to BD 500,000 and offers flexible options such as repayment periods of up to 10 years and a grace period from 1 month up to 2 years as per the bank’s discretion. (IY) I.Y BNA 1018 GMT 2013/05/07