EQUITY BANK (KENYA) LIMITED NASIRA PORTFOLIO
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Equity Bank (Kenya) Limited ("EBK") is a fully owned subsidiary of Equity Group Holdings Plc ("EGH"), a non-operating holding company (the "Group"), one of the largest financial service groups in East Africa. Since 2006, the Group is listed on the Nairobi Securities Exchange and operates in seven markets in East and Central Africa (Kenya, DRC, Uganda, Tanzania, Rwanda and South Sudan, including a representative office in Ethiopia). EBK, which is the flagship Bank of the Group, was founded in 1984 in Nairobi and originally acted as a provider of mortgage financing for the low-income population. In 2004, it transformed into a commercial bank becoming today the No. 2 Bank in Kenya by size. The Bank offers a broad range of financial products and services for retail and business clients and historically has a special focus on SME's and Micro SME's.
What is our funding objective?
FMO will provide a revolving unfunded (NASIRA) portfolio guarantee covering loans provided to MSMEs affected by the COVID-19 crisis (including female, young and agricultural entrepreneurs).
Why do we fund this investment?
FMO aspires to build a strong relationship with EBK along the mutual strategy of sustainable commercial development through financing MSMEs in Kenya's real economy (including Young, Female and COVID-19 affected entrepreneurs), thereby enabling those companies to invest in their businesses, create jobs and contribute to the overall economic development and growth of the economy.
What is the Environmental and Social categorization rationale?
Equity Bank (Kenya) Limited is a longstanding client of FMO. EBK is classified as E&S Category A in accordance with the EDFI E&S Standards. The clients in EBK's portfolio are active in sectors which have potential significant and adverse environmental and social impacts, such as mining & quarrying, agriculture and energy & water. E&S risk management is maturing at EBK, which will be enhanced following actions agreed in the E&S action plan that is part of this facility. EBK recently set up an E&S risk department which resulted in a significant increase in internal E&S capacity to mitigate the negative E&S impacts of its financing activities. New hires and a focus on ESG communications and reporting are expected to further strengthen ESMS implementation.
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| Date | Total FMO financing |
|---|---|
| 12/23/2020 | KES 69.13 MLN |
- Region
- Africa
- Country
- Kenya
- Sector
- Financial Institutions
- Effective date
- 12/23/2020
- Total FMO financing
- KES 5171.37 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A