IFC plans Sh19bn loan to KCB Kenya for capital, SMEs credit
The International Finance Corporation (IFC) plans to provide a $150 million loan package to KCB Kenya to support small and medium-sized enterprises and strengthen the bank's capital base. The deal includes technical assistance for implementing sustainable finance frameworks.
Why it matters
This investment highlights the role of multilateral development banks in bolstering financial stability and economic growth in emerging markets through targeted lending and advisory services.
The International Finance Corporation (IFC) is set to loan Kenya Commercial Bank (KCB) Kenya Sh19.4 billion ($150 million) for onward lending to small enterprises and to enhance its capital base, new disclosures by the World Bank affiliate show.
The IFC said that it will lend $100 million directly from its account to the Kenyan bank, with the other $50 million coming from parallel lenders to be mobilised by the institution. Approval of the lending is expected to be considered in an IFC board meeting on September 4.
In addition to the cash loan, the IFC added that it will offer advisory services to KCB Kenya to support the implementation of a sustainable finance framework.
“Financial additionality includes an innovative derisking instrument not readily available in the market, financial structure in terms of loan amount and tenor, and mobilisation of additional funding from co-lenders,” said the IFC in its disclosure.
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