Equity Group has signed a US $100 million (Kshs 11 Billion) loan facility with Team Europe, Germany’s DEG, the Netherlands FMO, and the UK’s CDC Group to support SMEs within the country.
The Group committed to loan repayment accommodation for up to 45 percent of the customers whose cashflows and operation cycle were deemed likely to be negatively impacted during the COVID-19 pandemic.
In its third-quarter 2020 results, Equity reported a 30 percent growth in its loan book in support of its customers who saw opportunities for green shoots and diversifications in the COVID-19 environment. “ The impact of the COVID-19 pandemic started as a health crisis and quickly became an economic and humanitarian crisis that has seen more than 40 percent of Kenyan micro, small, and medium business owners affected by the great economic slowdown. Equity’s goal is to keep the lights of the economy on to sustain lives and livelihoods and facilitate the recovery of businesses as the economy begins to reopen. The syndicated facility indicates cross-cutting trust in Equity’s ability to manage a sophisticated financing mechanism ,” said Dr. James Mwangi, Managing Director, and CEO of Equity Group. “DEG is delighted to realize a further financing for Equity Bank, together with our European partners CDC and FMO. Through our cooperation, we are contributing to supplying local SMEs with credit, which is particularly important and in-demand at present,” Christiane Laibach, CEO of the DEG Management Board said.
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“We are delighted to partner with DEG and FMO to provide much-needed capital to support entrepreneurs and SMEs in Kenya. Equity is a natural partner for the DFI community with its mission to change people’s livelihoods through empowering entrepreneurs. CDC has invested in Kenya for over 70 years and is committed to increasing the resilience of businesses, boosting inclusive growth, and contributing to the country’s long-term economic recovery,” said Seema Dhanani, Head of Office & Coverage Director, CDC, Kenya.
Jane Marriott, the British High Commissioner to Kenya, said that t he UK is fully committed to delivering a strong, resilient economic recovery from COVID-19 in Kenya.
This is the fourth tranche for Equity Group after having signed a $50 million USD (Kshs 5.5 Billion) loan facility with IFC in September; a $100 million USD (Kshs 11.0 Billion) from PROPARCO in October and a EUR 125 million (Kshs 16.5 Billion) loan facility signed last week with the European Investment Bank to fortify credit […]