Equity Bank Gets $62m Credit To Boost SME Lending

 Niyi Aderibigbe Finance/Money

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VENTURES AFRICA – Kenya’s Equity Bank has received a Sh5.6 billion ($62 million) line of credit (LOC) from the European Investment Bank (EIB). The credit facility is expected to boost the bank’s loan book and will be specifically used to fund small and medium enterprises.

The LOC is part of the European lender’s global loan facility that is aimed at supporting SMEs seeking local or international currency-denominated business loans.
“Beyond providing SME loans, we shall also provide them with access to technical business development specialists from Equity Consulting Group to
enable them grow,” said James Mwangi, the chief executive of Equity Bank Group.

Mwangi noted that demand for such funds has risen in Kenya, due to ongoing infrastructural development.

He said the bank was committed to advancing an integrated solution that will foster SME transition to a corporate level.
Equity Bank has over the years, grown its SME lending. In 2013, it gave out more than 170,000 loans to SMEs totalling over Sh35.6 billion ($412 million).

Apart from the LOC, Equity Bank will also be eligible to enjoy the EIB Technical Assistance programme support, which is geared towards raising the technical capacity of financial and related development partners