NAIROBI, Kenya, Jan 19- Co-operative Bank of Kenya has secured Sh8.25 billion from the International Finance Corporation to support MSMEs affected by the outbreak of the coronavirus disease in the country.
The long-term loan has a tenure of 7 years, coming in as Tier II Supplementary Capital.
The bank’s Group Managing Director Gideon Muriuki said the facility is intended to support customers operating in business areas such as Micro, Small Medium Enterprises (MSMEs), businesses undertaking Climate-Smart Projects, including Agricultural inputs and sustainable agricultural practices, renewable energy, energy efficiency and related areas.
” The funding has come at a most opportune time as it boosts our ability to better support our MSME customers to
stabilize and turn-around their businesses to meet the challenges brought about by the pandemic,” said Muriuki.
The IFC facility will also enhance the bank’s opportunities for growth and overall performance through supporting the key MSME business customers to not only survive the pandemic but also to remain operational and viable for the long term.
It will also enhance the bank’s assets and liability match, with long-term loans to customers being financed using the long-term debt.
Muriuki added that through this initiative, there will be a diversification of the bank’s asset and funding portfolio by increasing long-term funding to support deposit funding.
The credit line will also boost the bank’s competitive position on account of affordable lending
The funding also comes at a time when the bank is implementing mitigation strategies of helping customers ride out the impact of the pandemic.
“The lender remains confident that the strategic initiatives that have been put in place focused on resilience and growth will give the business the impetus for sustained growth.”