Smaller businesses in Kenya will get a new leg-up from leveraged cheaper finance from Fina Bank [through EIB]. The credit market in rural areas is one missing market that needs filling and could radically alter the profile of rural poverty.
Source: The Nation (Nairobi) Kenya: Fina Bank Gets Long Term Credit for Smes
Fina Bank's small and medium clients can now access long-term financing of up to 10 years following an agreement with the European Investment Bank (EIB) to provide funding.
Under the agreement signed on Friday, Fina Bank will receive Sh273 million (3 million euros) from the European bank's Sh1.8 billion (EUR 20 million) line of credit.
Mr Carmelo Cocuzza, the EIB head of regional representation for Central and East Africa, said the loans will be available in Kenya shillings, US dollars or Euros at either floating or fixed rates.
"Besides being long-term, the loans will be beneficial to the clients because they will be cushioned against the local interest rates fluctuations," said Mr Cocuzza.
Fina Bank group CEO, Mr Frank Griffiths, said the agreement will allow the banks to provide longer term loans to its growing number of SME customers.
"Expanding a business is not easy and being able to finance a project for up to 10 years will be greatly appreciated," said Mr Griffiths.
He added that the ability to offer up to a 10-year loan, in a variety of currencies, and with the option of a fixed rate of interest, is relatively unique in this market.
It targets the agro-industry, fishing, mining, food processing, manufacturing, tourism, education and health-care.
Source: The Nation (Nairobi) Kenya: Fina Bank Gets Long Term Credit for Smes
Fina Bank's small and medium clients can now access long-term financing of up to 10 years following an agreement with the European Investment Bank (EIB) to provide funding.
Under the agreement signed on Friday, Fina Bank will receive Sh273 million (3 million euros) from the European bank's Sh1.8 billion (EUR 20 million) line of credit.
Mr Carmelo Cocuzza, the EIB head of regional representation for Central and East Africa, said the loans will be available in Kenya shillings, US dollars or Euros at either floating or fixed rates.
"Besides being long-term, the loans will be beneficial to the clients because they will be cushioned against the local interest rates fluctuations," said Mr Cocuzza.
Fina Bank group CEO, Mr Frank Griffiths, said the agreement will allow the banks to provide longer term loans to its growing number of SME customers.
"Expanding a business is not easy and being able to finance a project for up to 10 years will be greatly appreciated," said Mr Griffiths.
He added that the ability to offer up to a 10-year loan, in a variety of currencies, and with the option of a fixed rate of interest, is relatively unique in this market.
It targets the agro-industry, fishing, mining, food processing, manufacturing, tourism, education and health-care.
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