Oikocredit signs KES 1 billion equity investment in Credit Bank
UPDATE: The deal was not pursued further as of late 2019.
Nairobi, Kenya – Credit Bank PLC has signed a KES 1 billion 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 2 billion from shareholders. Onboarding Oikocredit is a steadfast move towards attaining Credit Bank’s authorised capital of KES 7.5 billion, which should see Credit Bank attain Tier II status.”
Oikocredit’s Portfolio Director – Africa, Robert Kagiri Wanjohi, 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.”
Social impact investor and worldwide cooperative Oikocredit has over 40 years’ experience funding organisations active in financial inclusion, agriculture, and renewable energy.
Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia, and Latin America to sustainably improve their living standards.
Oikocredit finances almost 700 partners with total outstanding capital of over € 1 billion (at 30 June 2019).
For more information: www.oikocredit.coop
About Credit Bank
Credit Bank has won industry awards in recognition of excellence in serving the SME market, its structured banking products, innovative lending practices and trade finance solutions. The awards include special recognition in being the Best Bank in Trade Finance, Bank with the Lowest Charges for the SME Segment, Best Commercial Bank Governance Team awarded by CFI.co, Best Recovery Award, Best Bank in SME Banking, Best Tier III Bank in Customer Service, Best Bank in Sustainable Finance, Best Bank in Tier III, Best Bank in Sustainable Corporate Social Responsibility, Excellence in Straight Through Processing and most recently, Best SME partner Bank by the The European.
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Note for editors
For more information or to request an interview, please contact:
- Rebecca Watson, Communications Advisor, Oikocredit International, telephone: +31 33 422 4040, email: firstname.lastname@example.org