Equity Bank inks Ksh.16.5bn deal with European Investment Bank
Equity Group Holdings has signed a Ksh.16.5 billion loan facility with the European Investment Bank (EIB) and the European Union (EU) to boost its funding of Micro, Small and Medium Enterprises.
The long-term loan facility will support MSMEs to recover sustain and scale their operations, allowing them to retool, repurpose and become more agile.
Under the partnership deal, Ksh.6.5 billion will go to agriculture while Ksh.10 billion will go MSMEs.
A further Ksh.2.6 billion grant offered by EIB will support entrepreneurs with financing through capacity building to support small businesses and the agriculture sector to easily access the credit facilities.
Equity Bank, the EIB and the EU chose to have the loan facility in Kenya Shillings to match the operating currency of SME businesses and eliminate the risk of foreign exchange.
Dr. James Mwangi, Equity’s Managing Director and CEO said equity’s goal is to “keep the lights of the economy on by ensuring firms and businesses remain open, sustain employment and by keeping markets open for goods and services thus facilitating a quick recovery of businesses and the economy at large.”
The facility extends over the entire period of the program’s 5 years, ensuring the matching of long-term investment by SMEs to emerge stronger post the coronavirus pandemic.
This is the third tranche for Equity Bank after having signed a Ksh.5.4 billion facility with IFC in September and a Ksh.10.9 billion facility from Proparco in October, a total of Ksh. 33 billion to fortify credit flows and liquidity to MSMEs.