Equity Group Wednesday signed a $100 million (KSh10.96 billion) loan deal with leading European development banks aimed at deepening lending to micro small and medium-sized enterprises (MSMEs) hit by Covid-19 disruptions.
The loan is from Germany’s DEG, the Netherland’s FMO and Britain’s CDC Group.
“The syndicated facility indicates cross-cutting trust on Equity’s ability to manage a sophisticated financing mechanism. The three development banks recognise the critical role that Equity plays in promoting access to finance for MSMEs,” said Equity Group CEO James Mwangi.
Chief Investment Officer at FMO Huib-Jan de Ruijter said the facility will be a lifeline for the MSMEs by providing capital to keep businesses running.
This is an addition to the KSh16.52 billion (€125 million) loan from the European Investment Bank (EIB) and the European Commission.
In response to the COVID-19 crisis, Equity launched an offensive and defensive approach to support customers to sustain themselves while innovating alongside MSMEs who are leveraging on the opportunities that have presented within the crisis.
The Group committed to loan repayment accommodation for up to 45% of the customers whose cashflows and operation cycle were deemed likely to be negatively impacted during the COVID-19 pandemic.