Completed Development AidData Chinese Aid

CDB provides $50 million loan to Equity Bank Kenya Limited for on-lending to SMEs

$50M USD

Funder	China Development Bank (CDB)
Recipient Organization	Kenya Equity Bank
Country	Kenya
Start Date	May 16, 2010
End Date	Sep 21, 2030
Duration	7,433 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1264`

Grant Description

CDB provides $50 million loan to Equity Bank Kenya Limited for on-lending to SMEs On May 16, 2010, China Development Bank (CDB) signed a $50 million (KES 4,308,000,000) loan agreement with Equity Bank Kenya Limited — a financial services provider headquartered in Nairobi, Kenya — to support the development of small and medium-sized enterprises (SMEs).

📋 Loan / Grant Terms

💰 Loan Amountcarried an interest rate of 6-month LIBOR plus a 2

📅 Maturity4.54 years

The loan was backed by the Equity Bank Kenya Limited directors’ guarantee. The loan fully disbursed between 2010 and 2012 and it was fully repaid by 2014.

The proceeds of the CDB loan were to be used by Kenya Equity Bank to on-lend to SMEs -- especially agro-processing SME exporters -- at interest rates of between 7% and 9% and maturities of 3-7-years.

The CDB loan reportedly supported the Mataara Tea Factory Expansion Project, the Kapkoros Tea Factory Project, the Jetlink Logistics Project, among other projects.

📋 Staff Comments

This loan was part of an Africa-wide $1.454 billion lending program by the China Development Bank to support the development of SMEs.
In 2012, CDB provided a separate medium term loan to Equity Bank Kenya (as captured via Record ID#69475).
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

China Pumps Up Equity SME Kitty With $4 Billion
China Dep't Bank Gives Kenya's Equity Bank USD51mn Loan
China's bank gives 50 ml USD loan to Kenyan bank
China Union Pay appoints Kenyan bank agent in East Africa
国家开发银行非洲中小企业发展专项贷款产品介绍
非洲中小企业发展专项贷款
国家开发银行非洲中小企业发展专项贷款产品介绍
A New Approach? The Impact of China's Development Aid on Kenya
Special Loan for the Development of African SMEs Funded by China Development Bank
Equity News
CORRECTED - China Dev't Bank gives Kenya's Equity Bank $51 mln loan
Equity Bank Annual Report 2011
Equity Bank Annual Report 2010
Kenya: Equity Promises Easy Loans, http://global.factiva.com/aa/?ref=AFNWS00020100524e65o001cx&pp=1&fcpil=en&napc=S&sa_from=
Special Loan for the Development of African SMEs
Annual Report and Financial Statements 2013
ANNUAL REPORT AND FINANCIAL STATEMENTS 2014
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
Integrated Report and Financial Statements
Annual Report and Financial Statements 2012 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.