The Co-operative Bank of Kenya has received a 7-year funding facility amounting to Sh13.8 billion from a consortium of financial institutions led by DEG.
The funding is for on-lending mainly to Micro, Small and Medium-sized Enterprises (MSMEs) in Kenya.
The loan is a Tier II Facility that has been fully disbursed.
DONE DEAL: The DEG-led Consortium and Co-op Bank teams after sign-off of the $100 Million financing agreement. (L-R) Wilfred Apunda – Senior Investment Manager DEG, Michael Fischer – Director Financial Institutions Africa at DEG. pic.twitter.com/yekU1UbEWc
— Co-op Bank Kenya (@Coopbankenya) July 14, 2023
DEG acted as Lender, Mandated Lead Arranger and Facility Agent, while the Consortium included The Africa Agriculture & Trade Investment Fund (AATIF), Micro Small Medium Enterprises Bonds (MSMEB) and European Development Finance Institutions such as Finnfund, Norfund and the co-financing facility European Financing Partners (EFP).
Co-operative Bank Group Managing Director & CEO Dr Gideon Muriuki said, “The funding by DEG and the Consortium is timely given the great need to better support our business customers.”
“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.”
Monika Beck, a Member of DEG’s Management Board, said, “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.”
The DEG-led facility is a significant support to the Co-operative Bank of Kenya, especially at this time when the bank’s digitization journey is moving full steam ahead with the recent transition to a new, robust core banking system.