Signature(s)
Summary sheet
- Credit lines - Credit lines
Intermediated lending transaction with Family Bank Limited to finance the expansion of its SME/Midcaps lending portfolio with a particular focus on youth and gender finance in line with the 2X Challenge criteria.
Financing of small/medium projects carried out by small and medium-sized enterprises and midcaps, with a particular focus on youth and gender finance in line with the 2X Challenge criteria.
The EIB will provide a EUR 50m multiple beneficiary intermediated loan to Family Bank (FBL), Kenya, for on-lending to eligible small and medium-sized enterprises (SMEs) and MidCaps. FBL is medium-sized, second tier financial institution in Kenya, with a long-standing track record of MSME finance in the country. The bank's corporate governance, credit risk, and experience in deploying DFI funding are deemed satisfactory to implement an EIB line of credit.
The project addresses the market failure of providing adequate access to finance for MSMEs and MidCaps throughout Kenya, particularly those owned and/or managed by women and young entrepreneurs. In addition to closing the financing gap affecting these underserved groups, FBL's customers will be benefit from the EIB's commercially attractive financial conditions, thereby contributing to sustainable economic growth and poverty reduction in the country in support of several SDGs under the 2030 Agenda.
The project demonstrates very strong strategic alignment with EU cooperation and partnership priorities in Kenya. The loan will contribute to the EU's Global Gateway and Green Deal Team Europe Initiative. Specifically, by financing FBL's MSMEs customers active in agriculture and trade, the loan may benefit climate smart and sustainable value chains. The operation will support several priority areas under the current MIP, notably priority area 2 and its specific objective "Increased opportunities for women and youth to access the labour market and sustainable livelihoods".
In alignment with the Sustainable Development Goals (SDGs), this operation will contribute to achieving SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work), SDG 10 (Reduced Inequalities), and SDG 17 (Partnerships for the Goals)
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Under EFSD+ Guarantee
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