Overview

CDB provides $56.8 million loan to Equity Bank Kenya Limited for on-lending purposes in 2012

Commitments (Constant USD, 2023)$61,560,853

Commitment Year•2012Country of Activity•KenyaDirect Recipient Country of Incorporation•KenyaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 20, 2012

Last repayment (originally scheduled): Sep 20, 2017

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 $56.8 million loan to Equity Bank Kenya Limited for on-lending purposes in 2012

Grant element•13.5396%Interest rate (t₀)•3.25765%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5.005 years

Narrative

Full Description

Project narrative

In 2012, China Development Bank (CDB) signed a $56.8 million (KES 4,983,000,000) 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 2.6% margin and a 5-year maturity (September 20, 2017). The loan was backed by an Equity Bank Kenya Limited directors’ guarantee. The loan had fully disbursed by 2014 and it was fully repaid by 2017.

Staff comments

1. This loan was likely part of an Africa-wide $1.454 billion lending program by the China Development Bank to support the development of SMEs. 2. AidData has estimated the all-in interest rate by adding 2.6% to average 6-month LIBOR in 2012 (0.687%). 3. 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).