VENTURES AFRICA- Kenya’s Co-operative Bank is about to receive a Sh5.5billion ($65 million) loan from the private lending arm of World Bank, International Finance Corporation (IFC). The loan will assist small business owners and farmers to expand their businesses.
According to IFC, the primary objective of the loan is to support the bank’s growth, address its balance sheet maturity mismatch, and help it meet its dollar funding needs.
Established in 1965, Co-operative Bank is Kenya’s third largest bank accounting for 8.2 per cent of total assets in the banking industry. It was listed on the Nairobi Stock Exchange in 2008.
Small and mid-size enterprise (MSE) lending makes up 5.3 per cent of Co-op Bank’s lending portfolio, while agribusinesses accounts for 3.10 per cent. Corporate lending, mortgages, personal loans and asset finance make up the remainder of the bank’s portfolio.