Equity Bank of Kenya Limited Chief Executive Officer James Mwangi (R) and European Investment Bank Vice-President Pim Van Ballekom (L) in Nairobi on 29/03/2017. Equity Bank has signed Kshs 10.5 Billion financing agreement with European Investment Bank to support regional entrepreneurs.
European Investment Bank, the long-term lending institution of the European Union, has extended about Sh10.57 billion (€95 million) to regional credit-starved SMEs through Equity Holdings Group and Housing Finance.
The Luxembourg-based lender yesterday signed two long-term new credit lines signed Equity and Housing Finance to support small projects in Kenya, Tanzania, DR Congo and Uganda.
The EIB signed a €75 million (about Sh8.33 billion) credit line with Equity Group, funds which will be disbursed through its subsidiaries in Tanzania, Uganda and DRC. This is comprised of €36 million (Sh4 billion) will be availed through Equity Tanzania, €20 million (Sh2.22 billion) for Procredit DRC and €19 million (Sh2.11 billion ) through Equity Uganda.
This is in addition to €50 million (Sh5.59 billion) the East African Community’s largest lender by deposit accounts with the EIB for onward lending through Equity Bank Kenya.
EIB vice president Pim van Ballekom said the funds are part of the EU bank’s commitment to support Kenyan lenders.