Regional micro-financier Platinum Credit is set to get a Sh5.2billion ($45 million) loan from the International Finance Corporation (IFC) to support the growth of small businesses in Kenya and Uganda.
A disclosure by the World Bank’s private-sector lending arm said the credit will be extended to Platcorp Holdings through its subsidiaries Platinum Credit Kenya, Premier Credit Kenya, Platinum Credit Uganda, and Premier Credit Uganda.
The Kenyan subsidiaries will jointly receive Sh4.65 billion ($40m) with the rest of the loan amount going to the Ugandan unit. “IFC’s own account will be up to $20 million (Sh2.3billion) in Kenya and up to $5 million (Sh582.2 million) in Uganda, with the remaining $20 million (Sh2.3 billion) mobilised for the Kenya entities through B1/Parallel loans on a best-effort basis,” the IFC said in a disclosure.
The loan is targeted at providing liquidity to the MFIs to support the growth of their micro small and medium enterprise (MSME) portfolios.
The proposed Sh5.2 billion facility is a three-year senior loan, with a one-year grace period.
“The loan tenor will also allow the MFIs to extend their current average borrowing tenor of more than two years to meet its long-term funding needs,” the IFC as quoted by a local newspaper.
Read also; Mozambique Targets Economic Recovery With $456 Million IFC Loan.