Ithmaar Bank, a Bahrain-based Islamic retail bank, and Tamkeen, a semi-government organisation in Bahrain established to help make the private sector the key driver of sustainable economic development, announced today (ed note: 28/11/15) the launch of a joint financing solution designed specifically to support private sector enterprises in the Kingdom.
The announcement follows an agreement earlier this year to add BD10 million to the joint Ithmaar-Tamkeen enterprise finance scheme portfolio which aims to help private sector enterprises meet their financing needs and achieve their business objectives. The new financing scheme will provide financing of up to BD500,000 to eligible private sector enterprises to help drive business growth.
Ithmaar Bank was the first Bank in Bahrain to offer SME financing with Tamkeen during 2007 and, with the launch of this scheme, the partnership continues to help support the sustainable growth and development of Bahrain’s SMEs.
“Through its various programmes, Tamkeen seeks to help enterprises achieve their developmental goals and provide them with opportunities for expansion and growth. This includes financing solutions that make it easier for these enterprises to succeed in their ventures and projects,” said Tamkeen Chairman and Acting Chief Executive H.E. Shaikh Mohammed bin Essa Al Khalifa. “To achieve this, Tamkeen cooperates with partners sharing the same objectives, amongst which is Ithmaar Bank, one of leading financing institutions in the Kingdom,” he said.
“We are pleased to participate in this Bahrain Government initiative together with Tamkeen to help enterprises realise their strategic objectives,” said Ithmaar Bank Chief Executive Officer Ahmed Abdul Rahim. “The enterprise finance scheme provides the foundation and engine for growth of business and the economy,” he said. “This is part of the Bank’s efforts to open new prospects for enterprises to achieve sustainability and growth, diversify their businesses, expand their customer bases, and build a solid foundation for future development,” he said.
The financing scheme offers private sector enterprises amounts of up to BD500,000 at a subsidised reduced profit rate, a repayment tenor option of up to 10 years, and grace periods of between one month and two years. Participating SMEs can also benefit from a variety of unique features, as well as exceptional flexibility in repayment methods, including monthly, quarterly, and semi-annual payments.
The total financing offered through Tamkeen’s Finance scheme in cooperation with partner banks totals BD412.5 million, with more than 6,000 enterprises having benefited from the programme to date.