Kenya Commercial Bank II

completed

The proposed engagement with Kenya Commercial Bank Limited (“KCB” or “the Group”) is aligned to IFC’s strategy for the East African financial sector. The Project is comprised of two related investments namely, a $100 million senior loan facility to KCB , one of largest and systemically important banks in Kenya and the East Africa region and a $5 million equivalent senior loan, in Rwanda Francs for KCB’s wholly owned subsidiary KCB Rwanda Limited (“KCBR”). The Project is expected to provide the Bank with significant long-term financing support of its strategic objectives. The funding will be used to support the Group’s regional expansion, increase access to finance for crucial sectors of the economy such as SME’s, and facilitate increased mortgage lending especially for affordable housing. The use of proceeds will also reach the Bank’s subsidiaries in the East Africa region and hence increase IFC reach in IDA countries. The senior loan facility to KCBR will be sourced through IFCs recently signed swap agreement with the National Bank of Rwanda (“NBR”), and will boost its long term funding base and allow it to increase mortgage lending for affordable housing. The investment for this project will be coupled with IFC’s mortgage toolkit technical Assistance to strengthen the Bank’s mortgage finance business.