KCB Rwanda is set to receive an investment of Sh. 1 billion from the International Finance Corporation (IFC). “The USD and RWF loans will provide the Bank with long-term funds to increase lending to the SME (Small and Medium Enterprises) and housing sectors,” the IFC said in a disclosure Tuesday, adding that the transaction is subject to approval by its board.
The proposed investment consists of two senior loans denominated in dollars and Rwandan Franc (RWF).
IFC investment is expected to provide muscle to KCB Rwanda lending to the two sectors that are potential growth drivers for the east Africa nation.
“The investment provides dollar funding to the bank to support the long-term USD needs of SMEs. The RWF tranche provides the Bank with long-tenured local currency funding to increase mortgage lending whilst prudently managing its asset liability management position,” IFC further said.
