The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, will loan RWF 3 billion (USD 5 million) to the Rwandan subsidiary of Kenya Commercial Bank (KCB) Group, a publicly-traded financial services company, to expand its mortgage finance program and for lending to small and medium-sized enterprises (SMEs). The local-currency loan has been structured in partnership with the National Bank of Rwanda, the country’s central bank, in an effort to reduce foreign currency risk for KCB. The loan is part of a USD 105 million package that IFC is providing to KCB Group. As of December 31, 2010, KCB Group reported total assets equivalent to USD 3 billion.
By Rohan Trivedi, Research Associate
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.
About Kenya Commercial Bank (KCB) Group:
The Kenya Commercial Bank (KCB) Group is a publicly-traded financial services company that is based in Nairobi, Kenya. KCB Group operates subsidiaries in Kenya, Burundi, Rwanda, South Sudan, Tanzania and Uganda. As of December 31, 2010, KCB Group reported total assets equivalent to USD 3 billion.
Sources and Additional Resources:
[1] IFC Press Release: “IFC Invests $5 million in KCB Bank to Support Affordable Mortgages in Rwanda”, http://ifcext.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/2F2AA27182C51EFE4225790B004C4E03
MicroCapital.org story, August 12, 2011: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Capitalization Fund, Africa Capitalization Fund (AFC) to Invest $10m in NBS Bank of Malawi for Lending to Small and Medium-Sized Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-capitalization-fund-africa-capitalization-fund-acf-to-invest-10m-in-nbs-bank-of-malawi-for-lending-to-small-and-medium-sized-enterprises/
MicroCapital.org story, January 11, 2011: “MICROCAPITAL BRIEF: Commercial Banks in Kenya Lower Loan Sizes to Compete with Microfinance Sector”, https://www.microcapital.org/microcapital-brief-commercial-banks-in-kenya-lower-loan-sizes-to-compete-with-microfinance-sector/
MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: Kenya Commercial Bank (KCB) Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kenya+Commercial+Bank+%28KCB%29+Group
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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