Kigali, Rwanda, September 14, 2011
—IFC, a member of the World Bank Group, today invested $5 million in KCB Bank Rwanda Limited to help the bank provide funding for affordable mortgages for home owners and borrowers in Rwanda. The financing is part of a total package of $105 million IFC invested to support KCB’s regional SME and mortgage lending business.
IFC’s loan will be denominated in Rwanda Francs, arranged through a unique swap agreement with the National Bank of Rwanda, and designed to mitigate risk for borrowers by limiting foreign currency exposure. The swap facility is expected to encourage long-term local currency funding to spur economic development.
KCB will use the loan to support its housing finance activities in Rwanda, generating economic growth and job creation through linkages with other key sectors, such as construction and capital markets. KCB is the largest bank by assets and branch network in East Africa, with an SME customer base of 100,000 clients.
Dr Martin Oduor-Otieno, KCB Group Chief Executive, said, “IFC’s credit line will enable KCB Group to increase its lending program to SME’s and expand our mortgage portfolio in the region. Thanks to this new loan, we intend to build on our achievements of 2010, continuing to extend credit to SMEs, as well as providing mortgages through our branch network.”
Jean Philippe Prosper, IFC Director for East and Southern Africa, said, “Housing finance plays an important role in IFC’s overall financial sector strategy and is linked to our mission to reduce poverty and improve living standards. In emerging economies, a mortgage allows people to have shelter and buy a real asset, which is often the largest investment a family may make. Increased housing finance will also have a multiplier effect by giving rise to new jobs, entrepreneurs and infrastructure in Rwanda.”
Given the rapid pace of innovation in this field, IFC activities in housing finance include investment services, advisory services, and resource support. IFC’s approach is to strategically address each country’s needs in context of its financial sector.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal year 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit