By Stanley Wabomba
NAIROBI, The Co-operative Bank of Kenya, one of the country’s largest commercial banks, has secured a long-term financing facility of 105 million US dollars from the International Finance Corporation (IFC), a World Bank affiliate which lends to the private sector.
The loan has a tenure of seven years, and is the second which Co-operative Bank, which is a commercial bank despite its name, has sourced from the IFC, after securing a 60 million USD loan in the fourth quarter of 2013.
The bank said in a statement here Tuesday that it would use the proceeds to of the facility mainly to finance export-oriented enterprises and other institutions which need financing support in foreign exchange.
The facility is intended to support customers of the bank which have foreign exchange earnings and operate in Small Medium Enterprises (SMEs), Women-0wned Small and Medium Enterprises (WOEs) and affordable housing through expansion of mortgages and construction finance.
Speaking after the signing of the loan agreement, the bank’s Group Managing Director and chief executive officer, Dr. Gideon Muriuki, said: “The funding comes at a most appropriate time in view of the critical need to support the growth of exports in the economy.
“In addition, the long-term tenure of the facility significantly boosts the bank’s ability to offer financing solutions that are better structured and priced to fulfill the long-term financing needs of customers.