| Asian Development Bank
PORT MORESBY - The Asian Development Bank (ADB) has made a $10 million (K34 million) equity investment into Kina Securities Limited, a fast-growing financial services company in Papua New Guinea.
The investment will help to increase the availability of sustainable financial services and support growth in PNG.
Kina Securities is one of four banks operating in PNG, where an estimated 70% of the population does not have a formal bank account.
Through its largest operating division, Kina Bank, Kina Securities is one of only two domestic banks catering specifically to the country's underserved segments including local small and medium-sized enterprises and the growing middle class.
ADB's investment will help Kina Bank to establish banking relationships that make it easier for its domestic small business clients to trade with customers and attract debt and equity investment.
These are areas that have been challenging for banks in PNG. ADB will also support Kina Bank on financial inclusion initiatives.
"This transaction is an important milestone in our efforts to promote financial inclusion in Papua New Guinea," said ADB executive Michael Barrow.
"With its focus on small business, along with the high employment potential that comes with developing this segment, Kina Securities is helping to create the conditions for inclusive growth.
“We look forward to supporting the bank's continued efforts to boost access to sustainable financial services in PNG."
Kina Securities CEO Greg Pawson said: "The investment by ADB is a great development and endorsement for the group and for Kina, its customers, and shareholders.
“Attracting an investment by ADB represents a key endorsement of our five-year strategic plan. The reputation, strength, and capabilities that ADB brings will enable us to better deliver on our purpose of empowering our customers and communities to have financial independence and security."
In addition to the equity stake, ADB will provide technical assistance. This will help to strengthen Kina Securities’ governance and risk management systems, including environmental and social management.