IDB Invest and JMMB Bank Promote Access to Financing for SMEs in Jamaica

IDB Invest, a member of the IDB Group, has made an agreement with JMMB Bank (Jamaica) Limited, which will allow the bank to access US$35 million at a five-year tenor to facilitate increased financing to small and medium-sized enterprises (SMEs).

Access to finance for SMEs remains a challenge in Jamaica, despite this sector generating 80% of jobs and contributing significantly to the country's gross domestic product, according to information from the Ministry of Industry, Commerce, Agriculture & Fisheries, 2019. 

The project will increase the availability of long-term financing to JMMB Bank to support the growth of its SME lending, while contributing to the maturity and structure of its debt profile. It will also enhance the diversification of its funding sources; thus, decreasing the dependence of shorter-term deposits, which will augur to the benefit of SMEs. In addition to the IDB Invest’s loan (US$35 million), a further US$35 million will be mobilized by IDB Invest from international banks.

Jerome Smalling, CEO and executive director of JMMB Bank, shares “This partnership underscores our commitment to assist SMEs to scale and grow their businesses by providing holistic solutions to support them throughout their business life cycle, as we recognize that access to affordable financial solutions play a key role in business operation and growth.” He further added that 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 realize their full potential and contribute even more to the country’s development. 

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. 

Regarding this transaction, James Scriven, CEO of IDB Invest said: “At IDB Invest, we are pleased to close 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."

This agreement underscores the strong creditworthiness and capacity of JMMB Bank, which has been supported by its solid and stable financial performance, outlined IDB Invest.  

 

JMMB Group's Strategic Thrust to Support SMEs

This move is in keeping with the JMMB Group’s strategy to add value to its SME clients, through the provision of financial partnership, resources, innovative financial solutions and a network, throughout these businesses’ life cycles; thereby, providing the necessary support for growth and filling the gaps that currently exist in the financial sector. It builds on efforts being made by the Group, having opened the doors of its SME resource centers in Jamaica and Trinidad and Tobago, within the last year. 

The JMMB SME Resource Centre is designed to help SMEs improve operational efficiency, lend expertise, and access resources, which will ultimately allow them to grow their businesses to the next stage of their life cycle. It provides coaching and a range of advisory services, including: marketing, taxation, accounting, business plan writing and other general financial management and back-office support, with the assistance of its partners and other organizations. 

This operation potentially contributes to five United Nations Sustainable Development Goals (SDGs): Gender equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10) and Responsible Consumption and Production (SDG 12).