The Co-operative Bank of Kenya has received Kes 14.15 billion from international investors to be lent to Micro, Small and Medium Enterprises (MSMEs).
The seven-year facility for small businesses is from a consortium of financial institutions led by DEG.
Co-operative Bank Group Managing Director & CEO Gideon Muriuki said the funding by DEG and the Consortium is most timely given the great need to support their business customers better.
“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 said.
The Bank 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.
DEG acted as the 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).
The European Development Finance Institutions are Finnfund, Norfund, and the co-financing facility European Financing Partners (EFP).
