NAIROBI, Kenya, Apr 20 – Family Bank has received a Sh3.42 billion (30 million Euros) financing from the European Investment Bank (EIB) to provide long term loans to Small and Medium Sized Enterprises in the country.
This is the second tranche by the European lender, with the first tranche of Sh2billion having been secured two years ago.
“We are excited at EIB’s confidence in the bank which has enabled us to secure more than Sh6.5 billion in several tranches. This SME Sector where the funds will be deployed forms the bulk of revenue-generating and employment creation in our economy,” Family Bank Managing Director Peter Munyiri said.
The funds which are now in the bank’s kitty ready for disbursement, come several months after the bank secured a similar facility of Sh1 billion from a Dutch financier, Oikocredit International.
The third tranche of Sh1.14 billion is expected in a month’s time and coupled with the Sh2billion disbursed two years ago and the latest funding of Sh3.42 billion, it will bring the total facility so far secured by Family Bank to Sh6.6 billion.
“Just as the facility by Oikocredit, the funding will be available for businesses across a wide variety of industry sectors under the SME category. The loans will be used for a wide variety of purposes,” Munyiri said.
The bank has also deployed a multi-pronged capital raising strategy, with a mix of both debt through the Sh10 billion bond, whose first tranche is currently trading at the NSE, and equity financing with increased global lenders’ interest.
Part of these funds are earmarked for lending activities as well as fuelling the bank’s expansion that has seen its branch network reach 92 with eight new branches slated for opening in various parts of the country by end of the year.