To help smaller businesses across a range of sectors in Kenya access financing for working capital, expansion, and to weather the effects of COVID-19, IFC and FMO, the Dutch entrepreneurial development bank, today announced a loan to I&M Bank Ltd. of $50 million.
With IFC contributing $30 million and FMO contributing $20 million, the loan will strengthen I&M Bank Ltd.’s regulatory capital position, allowing the bank to boost economic activity in Kenya by lending to small and medium-sized enterprises mainly in the trade, manufacturing and construction sectors.
As part of their support, IFC and FMO will train I&M Bank Ltd. staff on green financing so the bank can better support green investments, including renewable energy and climate-smart agriculture.
“The funding line from IFC and FMO is most welcome and will enable I&M Bank Ltd to provide cash flow support to small businesses whose operations have been affected by COVID-19 measures and the pandemic in general," said Kihara Maina, CEO, I&M Bank Ltd Kenya. “We believe that this funding line will help our MSME customers accelerate their business growth and support their expansion efforts while cushioning them from the ramifications of the COVID-19 pandemic.”
The financing facility from IFC and FMO will support I&M Bank Ltd.’s strategic initiatives, including in business banking solutions ranging from trade and debt finance to business transaction services.
”IFC and FMO's partnership with I&M Bank Ltd. will help the bank support small and medium-sized enterprises in the country, many of which are struggling amid COVID-19 disruptions. They have prioritized reinforcing capitalization of the banking system to enhance the sectors’ resilience as part of their response to the pandemic," said Amena Arif, IFC Country Manager for Kenya.
“We are pleased to continue our support to our long-standing client, I&M Bank Ltd. As a well-reputed top-tier bank in Kenya focusing on supporting local MSMEs, this project aligns with FMO’s strategy of reducing inequalities and enhancing financial support in the COVID-19 recovery period,” said Marnix Monsfort, Director Financial Institutions, FMO.
COVID-19 has hit Kenya’s economy hard, disrupting economic activity, forcing many businesses to close, and heightening the need for capital for others to continue operations. Small businesses in Kenya employ more than 80 percent of the working population.
In May, IFC announced a $2 billion commitment to support smaller businesses, increase trade across Africa to galvanize the continent's economic recovery from the pandemic and sustain and create jobs and business activities.
IFC's committed investment portfolio in Kenya is predominantly in the financial, manufacturing, agribusiness, services, and infrastructure sectors. Since March 2020, IFC has provided loans worth $395 million to Kenyan companies, including the loan announced today to I&M Bank Ltd.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
Media contact: Everlyne Situma, Email: esituma@ifc.org
About I&M Bank Limited
I&M Bank is a Tier 1 Kenyan commercial bank offering a full range of Corporate, Business, Premium and Personal banking services. Established in 1974, I&M Bank is wholly owned by I&M Group PLC which is listed on the Nairobi Securities Exchange and has a growing regional presence currently extending to Mauritius, Rwanda, Tanzania and Uganda. The Group lists CDC, which is a leading European Development Financial Institution amongst its main shareholders. I&M prides itself on its strong values and key strengths of innovative service and strong customer relationships. I&M Group aspires to be Eastern Africa’s Leading Financial Partner for Growththrough offering innovative and market driven banking solutions for its target segments. For more information, visit www.imbank.com.
Media contact: Suprio Sen Gupta, Group General Manager, Marketing Email: Ssengupta@imbank.co.ke Tel: + 254 719088204
