Faulu Kenya Limited

completed

_x000C_Faulu Kenya is one of the largest Non Bank Financial Institutions (NBFI) in Kenya. Initially Faulu Kenya focused on micro enterprise lending in Mathare slums of Nairobi. However, over the last 17 years, as lending methodologies and systems were improved, Faulu Kenya grew to become a company with 31 branches and a presence in most districts of Kenya. The objective of this project is to support Faulu Kenya as it transforms from a credit only institution to a regulated deposit taking institution. This transformation is characterized both by the development of a broader product offering as well as by the formalization of the shareholding structure and regulatory framework the institution adheres to. The addition of liability products will provide secure savings to clients as well as more control over funding and asset liability management for the institution. The shareholding structure will evolve, as the original NGO founder will be reduced from a majority owner to a minority shareholder, bringing a more commercial ownership and governance structure to match the more formal role Faulu Kenya will play in the financial sector. The proposed project consists of local currency debt (up to KSH 450 million, USD6 million equivalent) with warrants (for up to a 19.9% equity stake approximately equivalent to KSH 200 million or USD 2.7 million on a fully diluted basis).