Kenya - Family Bank Limited (FBL) - USD 30 million trade & SME finance facility

This proposal is a Trade and SME Finance Facility (Facility) of up to USD 30 million to Family Bank Limited (FBL). It comprises a (i) Trade Finance Line of Credit (TFLoC) to support Family Bank Limited’s (FBL) short term trade finance activities; (ii) Transaction Guarantee (TG) that will allow the Bank to provide up to 100% guarantee to Confirming Banks (CBs) for the non-payment risk arising from the confirmation of Letters of Credit and similar trade finance instruments issued by FBL; and (iii) Line of credit (LoC) to support SMEs in the health, renewable energy and agriculture sectors as well as Women Owned Businesses (WOBs). The project, therefore, presents a solid and rationale basis for the AfDB to contribute to SME financing through a sound, well-managed and reputable local bank that meets its key criteria for SME financing in terms of strong commercial viability, gender and SME orientation, strong development outcomes and additionality.