Kenya Commercial Bank (KCB) #ticker:KCB has received the first tranche of Sh8 billion ($80 million) of the $100 million line of credit advanced by the African Development Bank (AfDB) following a deal signed by the two institutions in 2017.
The funds are meant for onward lending to businesses in agricultural and energy sectors, as well as providing much-needed liquidity provision to enterprises in infrastructure and manufacturing particularly value-addition.
KCB chief executive Joshua Oigara said in a statement Thursday that the strategic partnership reflects lenders' continued commitment to finance projects in agriculture and food security, renewable energy and SMEs.
“This collaboration will enable KCB to continue serving its clients in various businesses segments as well as play a crucial role in contributing towards creation of employment among the youth,” said Mr Oigara.
“The funding will go a long way in supporting the bank’s interventions geared towards achieving the economic transformation of Kenya in line with the government’s Big Four Agenda.”
AfDB director-general for business development and delivery in East Africa, Gabriel Negatu, said the facility will bolster KCB’s ability to reach and serve deserving corporate businesses and SMEs in the country.
“It will also enable AfDB to contribute towards KCB’s efforts to broadening access to financing by businesses in Kenya hence performing an important role of private sector development,” said Mr Negatu.
Last month, AfDB issued a three-year bond targeting to raise Sh200 billion ($2 billion), with the cash intended for on-lending to its members including Kenya.
The issue followed the $2 billion five-year bond priced in November 2017, and was in line with the regional lender's strategy of issuing larger size, more liquid benchmark transactions.
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