AfDB signs Line of Credit Agreement with Equity Bank Kenya Ltd. to boost private sector development
Nairobi, Kenya, July 3rd 2015– African Development Bank (AfDB) and Equity Bank (Kenya) Limited (Equity) have today signed an agreement for a US $148-million multi-sector senior Line of Credit to facilitate onward lending to key economic sectors in Kenya.
The Line of Credit (LoC) extended to Equity Bank Kenya by AfDB is expected to boost Kenya’s private sector development through financing of projects that are strategically important to the country’s development agenda.
Speaking during the signing session, Equity Bank Managing Director and CEO Dr. James Mwangi confirmed that the funds would be availed to Micro, Small and Medium Enterprises seeking business related growth loans in both local and foreign currency.
“The LoC from AfDB will deepen Equity Bank’s lending capacity to vital economic sectors such as manufacturing, agribusiness, transportation, financial services, telecommunications, construction and energy,” Dr Mwangi explained.
Equity Bank is one of the largest banks in Kenya. It is at the forefront of the financial inclusion in the country and is closely associated with the empowerment of the traditionally unbanked, with a special focus on the credit needs of micro, small and medium enterprises.
During the ceremony, the African Development Bank’s Director for the Eastern Africa Regional Resource Centre, Mr. Gabriel Negatu, noted that the LoC to Equity Bank is well aligned with the priority areas of the Kenyan Government, the African Development Bank and Equity Bank.
“The proposed project is perfectly aligned with structural transformational themes espoused in the 2013-2022 Ten Year Strategy of the Bank which identifies a number of core operational areas for intervention in support of the objective of assisting African countries attain more inclusive growth and gradually transitioning to green growth”, said Mr. Negatu.
AfDB’s funding will contribute to diversifying and lengthening the maturity profile of Equity’s funding and enhance its ability to extend medium to long-term financing to viable projects and borrowers. The provision of foreign currency resources for on-lending to entrepreneurs importing dollar-priced machinery and equipment also fosters additionally by providing a natural foreign-currency risk hedge.
About the African Development Bank Group
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: j.mp/AFDB_Media
Caroline Otonglo, Senior Investment Officer, tel +225 2026 1510, firstname.lastname@example.org
Equity Bank (Kenya) Limited was founded in 1984 as Equity Building Society (EBS). The Bank has recorded various key milestones over the years. In 2004 it converted to a fully-fledged commercial bank, Equity Bank Limited (EBL). In 2006, the Bank was listed at the Nairobi Securities Exchange where it has become the largest bank by market capitalization. Over the years, the Bank has built a social and economic brand and scaled up by providing financial services to Kenyans through a diversified distribution of its products and services. It has also had a very unique approach to impacting the lives of the people in communities where it operates using existing infrastructure, enormous human capital and a strong brand.
Equity Bank (Kenya) Limited is a subsidiary of Equity Group Holding Limited.
For more information, kindly contact:
Equity Bank Group
T: 0763 026 007
T. 0763 799069