Skip to content
AidData logo

Overview

CDB provides $50 million loan to Equity Bank Kenya Limited for on-lending purposes in 2013

Commitments (Constant USD, 2023)$51,698,565
Commitment Year•2013Country of Activity•KenyaDirect Recipient Country of Incorporation•KenyaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 20, 2013
Last repayment (originally scheduled)
Sep 20, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • Kenya Equity Bank

Implementing agencies

Private Sector

  • Kenya Equity Bank

Loan description

CDB provides $50 million loan to Equity Bank Kenya Limited for on-lending purposes in 2013

Grant element•9.5195%Interest rate (t₀)•2.5734%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•3 years

Narrative

Full Description

Project narrative

In 2013, China Development Bank (CDB) signed a $50 million loan agreement with Equity Bank Kenya Limited — a financial services provider headquartered in Nairobi, Kenya — for on-lending purposes. The loan carried an interest rate of 6-month LIBOR plus a 2.2% margin and a 3-year maturity (September 20, 2016).

Staff comments

1. AidData has estimated the all-in interest rate by adding 2.2% to average 6-month LIBOR in 2013 (0.40869%). 2. On May 16, 2010, CDB signed a separate loan agreement with Equity Bank Kenya Limited to support the development of small and medium-sized enterprises (SMEs) (as captured via Record ID#1264). 3. In 2012, CDB issued a separate medium term loan to Equity Bank Kenya (as captured via Record ID#69475). 4. The 2012 CDB loan was likely part of an Africa-wide $1.454 billion lending program by the CDB to support the development of SMEs.