The Equity Bank Group has over the last 6 months signed loan deals worth Ksh 62.8 billion.
This is as the bank builds it’s liquidity to expand its lending capacity to small and medium sized enterprises.
Equity has signed a Ksh 10.9 billion loan deal with the Africa Development Bank (AfDB). This is the sixth loan facility deal the bank has signed and it allows Equity to give concessional medium-term loans to SMEs.
The loan facilities
Equity signed a Ksh 5.4 billion loan facility with the International Finance Corporation (IFC) in September 2020.
In October 2020, the bank signed a Ksh 10.9 billion deal with Proparco, a French financier.
This month, the bank signed a Ksh 16.5 billion loan with the European Bank.
The bank has also signed other loan facilities including Ksh 10.9 billion with European development Banks FMO, CDC-UK and DEG. Additionally, the bank signed a Ksh 8.25 billion loan facility with the African Guaranty Fund.
“The timing of the facility’s disbursement could not have been more appropriate especially as businesses seek to remain operational in the midst of a Covid-19 pandemic that is causing financial havoc,” Stefan Nalletamby, AfDB’s director for financial sector development.
Having received several loan facilities from several finance institutions, Equity will not participate in the State-led credit guarantee scheme. The State-led credit guarantee scheme is meant to unlock loans to SMEs through different banks in Kenya.