Credit Bank Inks Ksh1 Billion Investment Deal With Oikocredit
Credit Bank PLC has signed a Ksh1 billion equity investment with social impact investor Oikocredit. The investment, which is subject to regulatory approvals, will see Oikocredit take a minority stake in Credit Bank.
Credit Bank intends to use the funding to grow its SME loan portfolio and to further build on the trade finance solutions already offered by the bank.
As an investor, Oikocredit will work with Credit Bank to mainstream social impact and impact measurement into Credit Bank’s lending activities.
This comes days after Africa Development Bank approved a debt finance facility for the bank to further extend its presence in the SME market.
Speaking at the signing ceremony held today in Nairobi, Moses Mwendwa, Credit Bank’s Acting Chairman, said: “We welcome Oikocredit as a shareholder with extensive international investing experience and an emphasis on social impact. We look forward to a mutually beneficial relationship.”
Read: East Africa Portland Cement To Lay Off All Employees In Restructuring Program
Credit Bank’s shareholders approved a rights issue at its Annual General Meeting in June 2019, which is expected to raise an additional Ksh2 billion from shareholders.
Onboarding Oikocredit is a steadfast move towards attaining Credit Bank’s authorised capital of Ksh7.5 billion, which
should see Credit Bank attain Tier II status,” added Mwendwa.
Oikocredit’s Portfolio Director – Africa, Robert Kagiri, said: “Oikocredit is very pleased to be making this equity investment. Credit Bank is a good fit for our organisation’s mission because of its strong commitment to its SME customers and to financial inclusion. By enabling Credit Bank to expand its lending activities to SMEs, we’re helping Credit Bank support the creation of sustainable jobs. We look forward to working with Credit Bank towards lasting social impact for people on low-incomes in Kenya.”
For all the latest technology and business news from Kenya and the world, follow us on Twitter and like us on Facebook.