Project detail - EQUITY BANK (KENYA) LIMITED NASIRA PORTFOLIO

EQUITY BANK (KENYA) LIMITED NASIRA PORTFOLIO

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Who is our client

Equity Bank (Kenya) Limited ("EBK") is a fully owned subsidiary of Equity Group Holdings Plc ("EGH"), a non-operating holding company (the "Group"), one of the largest financial service groups in East Africa. Since 2006, the Group is listed on the Nairobi Securities Exchange and operates in seven markets in East and Central Africa (Kenya, DRC, Uganda, Tanzania, Rwanda and South Sudan, including a representative office in Ethiopia). EBK, which is the flagship Bank of the Group, was founded in 1984 in Nairobi and originally acted as a provider of mortgage financing for the low-income population. In 2004, it transformed into a commercial bank becoming today the No. 2 Bank in Kenya by size. The Bank offers a broad range of financial products and services for retail and business clients and historically has a special focus on SME's and Micro SME's.

Funding objective

FMO will provide a revolving unfunded (NASIRA) portfolio guarantee covering loans provided to MSMEs affected by the COVID-19 crisis (including female, young and agricultural entrepreneurs).

Why we fund this project

FMO aspires to build a strong relationship with EBK along the mutual strategy of sustainable commercial development through financing MSMEs in Kenya's real economy (including Young, Female and COVID-19 affected entrepreneurs), thereby enabling those companies to invest in their businesses, create jobs and contribute to the overall economic development and growth of the economy.

Environmental and social rationale

Equity Bank (Kenya) Limited is a longstanding client of FMO. EBK is classified as E&S Category A in accordance with the EDFI E&S Standards. The clients in EBK's portfolio are active in sectors which have potential significant and adverse environmental and social impacts, such as mining & quarrying, agriculture and energy & water. E&S risk management is maturing at EBK, which will be enhanced following actions agreed in the E&S action plan that is part of this facility. EBK recently set up an E&S risk department which resulted in a significant increase in internal E&S capacity to mitigate the negative E&S impacts of its financing activities. New hires and a focus on ESG communications and reporting are expected to further strengthen ESMS implementation.

More investments

Date Total FMO financing
12/23/2020 KES 69.13 MLN
Region
Africa
Country
Kenya
Sector
Financial Institutions
Signing date
12/23/2020
Total FMO financing
KES 5171.37 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A