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Chase Bank secures 50 mln USD lending facility from AfDB

Xinhua, March 31, 2016 Adjust font size:

Kenya's Chase Bank has secured 50 million U.S. dollars on-lending facility from the African Development Bank (AfDB) to support its growth strategy.

The facility has already been approved by AfDB's board and will further strengthen the bank's intervention in the SME sector.

"AfDB has been active in supporting financial sector lending across the continent, with a special emphasis on institutions that have a large reach and impact," Gabriel Negatu, AfDB's Regional Director, Eastern Africa, said while signing the agreement.

The African financial institution is actively engaging with and recruiting potential commercial bank partners, such as Chase Bank, that are focused, stable and capable of not only delivering good commercial results but also demonstrable development impact.

The new facility will be lent across key sectors of the Kenyan economy including business services, building and construction, retail, transport, communications, manufacturing and the hospitality industry.

Chase Bank's CEO Paul Njaga said through the new lending facility, the bank will be playing a critical part in addressing income inequalities by on-lending to sectors that have historically been locked out of the credit market.

"SMEs are the engine of growth of Kenya's economy in terms of employment creation and income generation. For the sector to grow sustainably, barriers to access financing will need to be addressed," Njaga said.

"We are therefore delighted by the partnership we have established with the AfDB to support clients in this business segment that have traditionally been under-served. This facility will also enable Chase Bank to pursue one of its key mandates of achieving financial inclusivity," he added.

Njaga noted that the funding would go a long way in fulfilling the bank's commitment to set aside 60 million dollars for SMEs financing over the next three years.

"By partnering with Chase Bank, the AfDB complements its existing initiatives to support SMEs in Africa as well as the development of private sector and financial markets on the continent," Njaga said. Endit