Co-op Bank MSME Loans: The Co-operative Bank has received a Sh. 8.25 billion facility from the International Finance Corporation to support struggling micro and small enterprises in Kenya.
“The funding has come at a most opportune time as it boosts our ability to better support our MSME customers to stabilize and turn-around their businesses to meet the challenges brought about by the pandemic,” Co-op Bank Group Managing Director and chief executive officer Dr. Gideon Muriuki said.
With the multi-billion capital injection from IFC, the bank will further work towards ensuring the key MSME business customers not only survive the economic effects of the Covid-19 pandemic, but also remain operational and viable for the long term. This long-term IFC loan has a tenure of seven years, and has come in as Tier II Supplementary Capital.
In addition, the bank will now be better positioned to provide long term loans to customers due to the now enhanced balance of assets and liability.
“We;ll now diversify the bank’s asset and funding portfolio by increasing long-term funding to support deposits funding and boost the bank’s competitive position on account of affordable lending,” the lender said in a statement.
Apart from MSMEs, the businesses undertaking Climate-Smart Projects, including Agricultural inputs and sustainable agricultural practices, Renewable Energy, Energy Efficiency and related areas, will also benefit from these funds. Co-op Bank MSME Loans.