This archive report was first published on 2 January 2022.
Equity Bank Kenya Limited has secured a Sh21.1 billion loan from the International Finance Corporation (IFC), marking one of the largest single credit facilities to a local lender.
The loan, which was announced on December 22, 2021, will be used to enhance the bank's regulatory capital and support its lending operations to climate-smart projects and small and medium enterprises (SMEs) in Kenya.
IFC will provide $50 million (Sh6.4 billion) of its own money while the balance of $115 million (Sh14.7 billion) will come from its partners.
As the single largest creditor to Equity Bank, IFC has already lent the bank Sh21.8 billion as of December 2020, leading a list of development finance institutions that have backed the lender's aggressive regional expansion.
The loan size per borrower usually ranges from $10,000 (Sh1.2 million) to $2 million (Sh256 million), and the IFC encourages the banks it funds to lend to women-owned enterprises and climate-related ventures such as renewable energy projects.
Equity Bank Kenya is the second-largest bank in Kenya, with total assets of $7.2 billion (Sh923 billion) as of September 30, 2021. The bank has a substantial nationwide presence in Kenya through its network of 190 branches, over 380 ATMs, and over 42,000 banking agents.
Arise B.V., backed by institutional investors Norfund, FMO and Rabobank, is the top shareholder with an 11.99 percent stake in the Kenyan banking multinational.
