The African Development Bank has approved a US $90-million financial package comprising a US $50-million Line of Credit and US $40-million Trade Finance Line of Credit to Commercial Bank of Africa Limited (CBA), Kenya.
The funding will be channeled to SMEs and local corporates in infrastructure, tradable and other transformative sector transactions in Kenya.
According to the Bank, the facility will provide liquidity support to expand financing to local corporates involved in value-addition in the trading, manufacturing, agriculture, infrastructure, transport, and construction, among other sectors.
“This intervention will contribute to CBA’s efforts to broaden access to its services, thereby reducing financing constraints faced by SMEs and local corporates in Kenya whilst also reducing Africa’s trade financing gap. The package will promote private sector development as well as support broad-based economic growth.” AFDB said in a statement.
Established in 1962, CBA is the largest privately-owned Kenyan bank with operations in Kenya, Tanzania and Uganda. It is ranked as a Tier 1 bank by the Central Bank of Kenya and is the 6th largest of 43 banks in the country.
The bank’s target customers targets include corporates, institutions, SMEs and the quality end of the personal banking market.
Outside its 19 million mobile platform (M-Shwari) customers, CBA offers a variety of conventional, as well as digital, banking products and services and has a broad client base spanning different sectors including telecommunications, manufacturing, agriculture and construction.
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