IDB Invest, a member of the IDB Group, through a recent agreement with JMMB Bank has provided the bank access to US$35 million with a five-year tenure to facilitate increased financing to small and medium-size enterprises (SMEs).
The project will also increase the availability of long-term financing to JMMB Bank to support the growth of its SME lending service, while contributing to the maturity and structure of its debt profile. This will in turn provide a diversification of funding sources, thereby decreasing the dependence of shorter-term deposits, to the benefit of SMEs.
Jerome Smalling, CEO and executive director of JMMB Bank, said the partnership underscored the bank's commitment to assist SMEs to scale and grow their businesses through the provision of holistic solutions to support them throughout their business life cycles.
“We recognise that access to affordable financial solutions plays a key role in business operation and growth. The bank believes that this sector has tremendous growth potential and, in leveraging further support to the sector, the company is seeking to play its part in helping SMEs to realise their full potential and contribute even more to the country's development,” he stated in a company release last week.
The partnership will also see IDB Invest lending support to the bank on the development and implementation of an environmental and social management system. In addition, IDB Invest will provide advisory services to bolster internal capacity and an action plan to ensure that JMMB Bank's human capital strategy attracts and retains the best talent pool.
CEO of IDB Invest, James Scriven said his organisation was pleased to have closed this transaction with JMMB Bank.
“This operation will allow SMEs in Jamaica to have greater access to financing, which makes me proud as this is part of our commitment to strengthen and support the increase in credit financing for SMEs within the Caribbean region by generating more jobs and promoting their development,” he stated.
According to IDB Invest, the forging of this agreement also stemmed from the bank's strong creditworthiness and capacity, which it said were also supported by its solid and stable financial performance.
JMMB, as a part of its larger group strategy, has sought to to add value to its SME clients through the provision of financial partnership, resources, innovative financial solutions and by building a network to support growth. Through the opening of its SME resource centres in Trinidad and Jamaica within the last year, small businesses are provided with the relevant coaching and advisory services including marketing, taxation, accounting, business plan writing and other general financial management and back office support. Through its partners and other oganisations, JMMB has designed these SME Resource Centres to help small operators to improve their operational efficiencies as well as to lend expertise and provide access to resources — all of which will ultimately help them to grow their businesses to the next stage.