This archive report was first published on 5 January 2022.
Published on January 5, 2022, Nairobi — Equity Group has secured a significant loan from the International Finance Corporation (IFC) to support its small and medium-sized enterprise (SME) clients in Kenya.
The $165 million loan, one of the single-largest credit facilities to a Kenyan lender, will help Equity Bank increase working capital and trade-related lending to its SME clients, particularly those facing COVID-19 related challenges.
According to the deal, IFC will directly provide $50 million, with the remaining $115 million coming from partners. The loan will support hundreds of Kenyan businesses in various sectors, including manufacturing, health, trade, transport, and consumer goods.
Equity Group Managing Director and CEO, James Mwangi, said, "IFC's loan will help Equity Bank extend much-needed support to our clients, particularly to SMEs in sectors hit hard by COVID-19. We have purposed to support and walk with them so that they can survive during this crisis, recover, and thrive after it."
IFC's Country Manager for Kenya, Manuel Moses, added, "IFC's longstanding partnership with Equity Bank underscores our commitment to Kenya's financial sector and wider economy, especially during these difficult economic times. Keeping businesses solvent and protecting jobs are essential parts of IFC's response to the unprecedented challenges of COVID-19."
As part of the deal, IFC will also become the bank's second-largest shareholder after signing an agreement to purchase insurance firm Britam's stake in the lender.
