CDB lends to Kenyan bank to help SMEs
Source: Xinhua |
May 18, 2010, Tuesday
|
Print Edition
Print Edition
CHINA Development Bank yesterday extended a US$50 million loan to Kenya's Equity Bank.
The loan will be used to boost small- and medium-sized enterprises in Kenya.
Key beneficiaries of this loan are those involved in agro-processing for value addition for exports. The credit line will be spent on building factories and imports of machinery.
"It is significant that Kenya and Equity Bank became the first beneficiary of this SME fund for Africa," CDB Chief Executive Jiang Chaoliang said during the signing ceremony in Nairobi. "It reflects the growing ties between Kenya and China."
The facility is for a six-year period and will be lent to SMEs at interest rates of between 3 and 7 percent, making it the cheapest funding for SMEs in the country.
The signing of the facility came after years of study on the Equity Bank's model and how it can be replicated in rural China. On its part, the Kenyan bank has been seeking funding and transfer of low-cost housing technology.
"The signing signifies south-to-south cooperation and collaboration to address our common challenges," Jiang said.
The facility will allow Equity Bank to advance long term development loans to SMEs at affordable interest rates in a bid to spur the sector which plays a crucial role in the social economic development of the country.
"We are proud to be the first beneficiary of this support by CDB and will allow us to grant our SME customers long-term facilities for development at very affordable interest rates," Equity Bank CEO James Mwangi said.
The loan will be used to boost small- and medium-sized enterprises in Kenya.
Key beneficiaries of this loan are those involved in agro-processing for value addition for exports. The credit line will be spent on building factories and imports of machinery.
"It is significant that Kenya and Equity Bank became the first beneficiary of this SME fund for Africa," CDB Chief Executive Jiang Chaoliang said during the signing ceremony in Nairobi. "It reflects the growing ties between Kenya and China."
The facility is for a six-year period and will be lent to SMEs at interest rates of between 3 and 7 percent, making it the cheapest funding for SMEs in the country.
The signing of the facility came after years of study on the Equity Bank's model and how it can be replicated in rural China. On its part, the Kenyan bank has been seeking funding and transfer of low-cost housing technology.
"The signing signifies south-to-south cooperation and collaboration to address our common challenges," Jiang said.
The facility will allow Equity Bank to advance long term development loans to SMEs at affordable interest rates in a bid to spur the sector which plays a crucial role in the social economic development of the country.
"We are proud to be the first beneficiary of this support by CDB and will allow us to grant our SME customers long-term facilities for development at very affordable interest rates," Equity Bank CEO James Mwangi said.
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