CDB provides 4.98 billion Ksh loan to Equity Bank Kenya Limited

In 2012, China Development Bank (CDB) signed a KES 4,983,000,000 loan agreement with Equity Bank Kenya Limited — a financial services provider headquartered in Nairobi, Kenya. The loan carried an interest rate of 6-month LIBOR (average rate in 2012: 0.687%) plus a 2.6% margin. Multiple maturity dates were given in Equity Bank Kenya annual reports; however, the loan ultimately matured on September 20, 2017. The loan was backed by the Equity Bank Kenya Limited directors’ guarantee. Annual reports from the Equity Bank of Kenya indicate that this credit line was fully drawn down by 2014 and was fully repaid by 2017. On May 16, 2010, CDB signed a separate Ksh 4.3 billion loan agreement with Equity Bank Kenya Limited to support the development of small and medium-sized enterprises (SMEs) with an interest of 6-month LIBOR plus a 2.2% margin and maturity on September 20, 2016 (see Project ID#1264).

Additional details

1. This project was likely 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

9

Number of total sources

9