(Ecofin Agency) - The Co-operative Bank of Kenya (Co-op Bank), which is the fourth-largest bank in the country by assets, will benefit from a long-term syndicated loan of $15 million from the Swedish development bank -Swedfund. The Kenyan bank will use the resources to increase its support to SMEs and finance green projects.
“We have an important role in supporting strong and healthy financial institutions like Co-op Bank to help them to continue lending to local businesses and entrepreneurs. By providing long-term funding to Co-op Bank that has its background and a strong footprint in rural areas with a clear and focused agenda for SMEs - and green finance we can support inclusive and sustainable growth, in particular in the currently challenging environment,” said Maria Håkansson, Head of Swedfund.
This new credit line is part of an overall $75 million financing mobilized by the Kenyan bank from a consortium, led by the International Finance Corporation. The amount will also strengthen Co-op Bank’s capital.
Over the first half of 2020, Co-op Bank granted loans up to KSh270.7 billion ($2.4 billion) to its clients, higher than the KSh255.8 billion granted the same period in 2019.