Tier 1 lender I&M Bank Limited has announced the signing of a strategic Green Finance Risk Sharing Guarantee partnership with Swedish International Development Cooperation Agency (Sida), with a focus on supporting sustainable and climate-aligned projects in Kenya.
Under the partnership, Sida will provide a USD 15 million guarantee over an eight-year period, enabling I&M Bank to unlock a green lending portfolio of up to USD 30 million. The arrangement incorporates a 50% risk-sharing structure, significantly strengthening the bank’s capacity to extend credit to businesses operating in eligible green sectors.
The collaboration aligns with I&M Bank’s Green Finance Agenda and directly supports I&M Group’s sustainability strategy under iMara 3.0. Additionally, it demonstrates the Bank’s commitment to advancing sustainable finance by channeling capital into sectors that support climate resilience, low carbon growth, and long-term economic value creation.
The initiative targets sectors central to Kenya’s green transition, such as renewable energy, energy efficiency, clean transport, green buildings, circular economy solutions, sustainable management of natural resources and land use, as well as water and waste management.
“Sweden, through Sida, is happy to support Kenya’s sustainable development and green transition through our partnership with I&M Bank Kenya.” -Marie Ottosson, Head of Development Cooperation, Embassy of Sweden in Kenya.
“The guarantee ensures that climate-aligned investments receive the financing needed to strengthen resilience, foster inclusive economic growth, and achieve measurable environmental and social impact,” she added.
I&M Bank Kenya Remarks
“This partnership is a defining moment for I&M Bank and for Kenya’s green finance story. We are not simply making commitments to sustainability, we are backing those commitments with real capital, a credible international partner, and a rigorous framework aligned to Kenya’s own regulatory architecture.” – Shameer Patel, Director, Retail and Business Banking I&M Bank.
I&M will leverage the Green Loan Principles developed by the international Capital Market Association to structure the loans under the partnership.
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