The European Investment Bank (EIB) has agreed a new Ksh 4.1 billion (US$40 million) financing facility with I&M Bank Ltd that will support investment by businesses across Kenya. Backed by the new EIB facility I&M Bank’s SME, Corporate, and Institutional customers around the country will benefit from cheaper loans.
The new credit line was signed in Nairobi by I&M Bank Kenya Chief Executive Officer Kihara Maina and European Investment Bank executive responsible for EIB business financing outside Europe Robert Schofield. The signing ceremony was witnessed by European Union Ambassador to Kenya Stefano Dejak and senior executives from I&M Bank Kenya and the European Investment Bank.
Under this credit line, I&M Bank Ltd will advance loans in US Dollars to eligible borrowers up to a maximum of 50% of the total cost of each of the projects, which comply with the EIB eligibility criteria undertaken by qualifying private enterprises and public sector entities in Kenya.
Commenting on the agreement, Maina said: “I&M Bank anchors its business model on being a partner of growth for all our key stakeholders. We believe that the funding line from EIB will help our SME, Corporate and Institutional Customers accelerate their business growth and support their expansion efforts.”
I&M Bank has a strong focus on Corporate, Institutional and Business banking solutions ranging from Trade Finance and Debt Finance to Business Transaction Services with a suite of Cash Management Services, Corporate Internet Banking, E-Commerce, Foreign exchange, Salary Processing, among other services and products.
The financing facility from EIB will complement I&M Bank’s strategic initiatives for its Corporate, Institutional and Business Banking segments.
“The European Investment Bank works in partnership with leading banks around the world to support business investment. This enables thousands of companies to expand, explore new business opportunities and create jobs. We welcome this new cooperation with I&M Bank that will boost business investment across Kenya and look forward to working with I&M across East Africa in the future,” said Schofield.
Dejak noted: “Kenya has a strong and vibrant private sector which is a key driving force of economic growth and employment in the country. The EU gives great importance in dialogue and engagements with this sector, and I believe that by supporting the private sector, we shall help the Kenyan government support the big four plan for economic prosperity.”
“We are honoured to receive this facility from the European Investment Bank, which affirms our position as a development partner of choice for the SME and Corporate sector aimed at facilitating the country’s economic growth,” said Kihara.
EIB works with leading banks across Africa to support private sector investment. The lender has previously worked with I&M Bank Rwanda on a similar initiative and will continue to partner with I&M Bank Kenya in future.
The Bank is the world’s largest international public bank and over the last five years have provided more than EUR 1.5 billion for business investment through credit lines with partner banks in sub-Saharan Africa.