Nairobi, Kenya – Credit Bank PLC has signed a KES 1bn equity investment with social impact investor Oikocredit today. 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.
Credit Bank continues to pursue strategic partners for growth. Africa Development Bank recently 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.
“Credit Bank’s shareholders approved a rights issue at its Annual General Meeting in June 2019, which is expected to raise an additional KES 2bn from shareholders. Onboarding Oikocredit is a steadfast move towards attaining Credit Bank’s authorised capital of KES 7.5bn, which should see Credit Bank attain Tier II status.”
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.”