This archive report was first published on 5 January 2022.
Published on January 5, 2022, IFC is set to become Equity Bank's second-largest shareholder after signing an agreement to purchase insurance firm Britam's stake in the lender.
IFC will acquire 253.1 million shares of Equity Bank from Britam at KES 55 each, with 164.5 million shares acquired directly and 88.5 million shares acquired through its IFC Financial Institutions Growth Fund LP.
As part of the deal, Equity Bank has also secured a loan of KES 18.6 Billion (US$ 165 million) from IFC to increase working capital and trade-related lending to its small and medium-sized enterprise (SME) clients in Kenya.
The loan, which is part of IFC's global $8 billion fast-track COVID-19 facility, will help hundreds of Kenyan businesses in the manufacturing, health, trade, transport, and consumer goods sectors.
According to Dr James Mwangi, Equity Group Managing Director, and CEO, the loan will help Equity Bank extend much-needed support to its clients, particularly to SMEs in sectors hit hard by COVID-19.
Manuel Moses, IFC Country Manager for Kenya, stated that IFC's longstanding partnership with Equity Bank underscores their commitment to Kenya's financial sector and the wider economy, especially during these difficult economic times.
