CDB provides 4.3 billion Ksh loan to Equity Bank Kenya Limited for on-lending to SMEs
Constant 2017 USD
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Business and other services (Code: 250)
On May 16, 2010, China Development Bank (CDB) signed a 4,308,000,000 Kenya Shilling loan agreement with Equity Bank Kenya Limited — a financial services provider headquartered in Nairobi, Kenya — to support the development of small and medium-sized enterprises (SMEs). The loan had an interest rate of 6-month LIBOR (0.659% in May 2010) plus a 2.2% (see Annual Report and Financial Statements 2012). Multiple maturity dates were given in Equity Bank Kenya annual reports; however, the loan ultimately matured on September 20, 2016. The loan is secured by the Equity Bank Kenya Limited directors’ guarantee.In 2010, Equity Bank Kenya had drawn down Ksh 121 million. In 2011, Ksh 2.91 billion was drawn down. Annual reports from the Equity Bank of Kenya indicate that this credit line was fully drawn down by 2012 and was fully repaid by 2016. The proceeds of the loan from CDB will be used by Kenya Equity Bank to on-lend to SMEs -- especially agro-processing SME exporters -- at interest rates of between 7% and 9% and maturities of 3-7 years. The CDB loan has supported the Mataara Tea Factory Expansion Project, the Kapkoros Tea Factory Project, the Jetlink Logistics Project, and others. In 2012, CDB provided a separate medium term loan of Ksh 4.93 billion to Equity Bank Kenya with interest of LIBOR 6M +2.6% margin and maturity on September 20, 2017 (see Project ID#69475).
This project is part of an Africa-wide $1.454 billion loan effort by the China Development Bank to support the development of SMEs.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Kenya Equity Bank [Private Sector]
Accountable agencies [Type]