Equity Bank Tuesday signed a $100 million (Ksh 10.9 billion) loan agreement with Africa Development Bank (AfDB) to support its expansion across Eastern and Central Africa.
The financing will be used to enhancing its ability to serve small and medium enterprises (SMEs as it grows.
This is the lenders’ sixth tranche for Equity Group after having signed a $50 million USD (Kshs 5.5 Billion) loan facility with IFC in September; a $100 million USD (Ksh 11.0 Billion) from Proparco in October and a EUR 125 million (Kshs 16.5 Billion) loan facility with the European Investment Bank, a US $100 Million (Ksh 11 Billion) Credit Facility with Leading European Development Banks DEG, FMO and CDC-UK and a USD 75 Million (Kshs 8.25 Billion) Loan Facility with the African Guaranty Fund to fortify credit flows and liquidity to MSMEs totaling Kshs 63.25 Billion.
“We have seen the impact of pumping oxygen to our MSMEs during this period. They have been able to re-imagine, repurpose and retool their enterprises and emerged more resilient thereby protecting jobs and creating more job opportunities through venturing into more innovative initiatives such as manufacturing of internationally certified quality PPEs,” said Dr James Mwangi, Managing Director and CEO of Equity Group Holdings.
The loan, a tier two facility with a seven-year maturity, is expected to promote EGH’s ability to offer bespoke products to MSMEs, strengthen its balance sheet and optimize its capital structure across the continent with a special focus on women and youth entrepreneurs.
“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,” said Stefan Nalletamby, AfDB’s director for financial sector development.