The Co-operative Bank of Kenya has gotten Sh14.15 billion ($100 million) from international investors to be lent to small businesses.
The seven-year facility for micro, small, and medium-sized enterprises (MSMEs) is from a consortium of financial institutions led by DEG.
DEG acted as lender, mandated lead arranger, and facility agent, while the consortium included the Africa Agriculture & Trade Investment Fund (AATIF), and Micro Small Medium Enterprises Bonds (MSMEB).
Others are the European Development Finance Institutions, namely Finnfund, Norfund, and the co-financing facility European Financing Partners (EFP).
“The funding by DEG and the Consortium is most timely in view of the great need to better support our business customers,” Co-operative Bank Group Managing Director & CEO Gideon Muriuki said.
“In addition, the long-term tenure of the facility has significantly boosted the bank’s ability to offer solutions that are better structured to fulfil the long-term financing needs of MSMEs,” Muriuki added.
The lender will use the fund to expand its client base, diversify assets, and fund its portfolio, among other things.
“By acting as lead arranger and providing the subordinated loan to Co-op Bank, DEG contributes to the further development of Kenya’s financial sector and the wider economy through the creation of jobs and local income, all geared towards the attainment of Sustainability Development Goals,” DEG Management Board Member Monika Beck said.
