Co-operative Bank of Kenya Secures a Kes 8.25 Billion Loan from IFC
The Co-operative Bank of Kenya has secured a long-term financing facility arranged by the International Finance Corporation (IFC) amounting to Kes 8.25 Billion.
The bank has stated that the loan is coming in as Tier II Supplementary Capital and will be repaid within a seven years period.
In a report issued by Dr. Gideon Muriuki the Co-op Bank CEO, he stated that the loan will allow Co-operative bank to aid customers working in Micro, Small Medium Enterprises (MSMEs) as well as Businesses undertaking Climate Smart Projects, including Agricultural inputs and sustainable agricultural practices, Renewable Energy, Energy Efficiency and related areas.
In addition, the loan is expected to enhance the bank’s assets and liability match as well as diversify the bank’s asset and funding portfolio by increasing long-term funding to support deposits funding.
Dr. Gideon Muriuki further added that the funding came at an opportune time as it boost their ability to better support their MSME customers to stabilise and turn-around their businesses so as to cushion them against the effects of the corona virus pandemic.
Co-operative bank said it 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.