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Washington, DC, June 20, 2005
— The International Finance Corporation, the private sector arm of the World Bank Group, will lend up to $5 million to Investment and Mortgages Bank Limited, Kenya’s ninth-largest bank, for on-lending to small and medium enterprises in Kenya. Part of the financing will also be used to expand lending to companies in the country’s fast-growing export sector.
Jyrki Koskelo, Director of IFC’s Global Financial Markets Department, said, “IFC’s long-term funding will provide much-needed financing to support I&M Bank’s exciting growth strategy. We are keen to assist financial institutions in Kenya that promote long-term development by financing the growing the small and medium enterprise sector.” He added that IFC would like to see the bank emerge as a strong regional player and is considering providing assistance to it in trade finance and risk management.
Sarit Shah, Executive Director of I&M Bank, said, “IFC’s investment marks the beginning of a long-term relationship between our two institutions, and it will contribute to strengthening Kenya’s banking system. With IFC as a partner, we hope to become a leading financier of smaller businesses and export-oriented industries, as well as a model institution in Kenya’s financial sector.
Richard Ranken, Director of IFC’s Sub-Saharan Africa Department noted, “This is a good example of a successful partnership between a fast-growing, reputable domestic bank and a global financier. We hope that this investment will serve as a catalyst for other local financial institutions in Africa whose growth can be supported by IFC through investments and technical assistance.”
IFC’s mission (
www.ifc.org
) is to promote sustainable private sector investment in emerging economies, helping to reduce poverty and improve people’s lives. IFC finances private sector investment in emerging economies, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
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