IFC advances $15mn loan to GT Bank Kenya for on-lending
The World Bank’s private sector lending arm has advanced Guaranty Trust Bank (Kenya) Ltd a $15mn loan for on-lending to small and medium-sized enterprises (SMEs).
The loan extended by the International Finance Corporation (IFC) will help businesses in East African country access funds including those with cash flows disrupted by the COVID-19 pandemic.
“GT Bank Kenya will provide access to finance to SMEs in trade, consumer goods, pharmaceuticals and manufacturing among others, helping them retain and create jobs, and strengthen operations,” the IFC said in a press release on Monday (24 January).
The $15mn loan to the subsidiary of Guaranty Trust Group of Nigeria is part of an $8bn IFC Fast Track COVID-19 Facility launched in 2020. The facility supports existing IFC clients in emerging markets affected by economic fallout of COVID-19.
GT Bank Kenya Managing Director Olabayo Veracruz said the loan will help the bank meet working capital and trade-related needs of businesses especially SMEs that are part of core clients of the financial institution.
“These businesses were adversely affected by the pandemic and are now recovering and reviving as the economy opens up, therefore requiring the support of the bank through access to credit,” he said.
GT Bank Kenya expects to on-lend the facility to customers in trade, fast moving consumer goods (FMCG), manufacturing and pharmaceutical sectors to fund working capital needs over the next year.
Amena Arif, the IFC country manager for Kenya, said the lender is committed to supporting Kenya’s private sector including strengthening the financial sector to help smaller businesses to access more financing.
“Our partnership with GT Bank Kenya will deliver funds to businesses, allowing them to emerge stronger from COVID-19 crisis,” she said.