Cytonn Investments Management Plc secured a Sh650 million loan from SBM Bank Kenya in March 2019, its first formal bank financing facility. The three-year loan will fund the completion of the Alma project, a mixed-use development in Kiambu's Ruaka area featuring 477 residential and commercial units.
CEO Edwin Dande revealed the agreement was finalized ahead of a symbolic signing scheduled within a week. He emphasized the strategic shift toward traditional banking partnerships, stating the firm aims to increase bank financing to 50% of its capital structure while reducing mezzanine finance from 50% to 30%.
The loan follows a November 2018 credit rating downgrade by Global Credit Ratings, which cited limited bank financing access as a constraint. Cytonn's long-term and short-term ratings fell from BB and B in 2017 to B and B, respectively, due to governance risks and untested project execution capabilities.
The firm has raised Sh22 billion through high-net-worth individuals, institutional investors, and joint ventures, with the SBM Bank loan representing a pivotal move toward diversified funding sources.
