Victoria Bank of Kenya has received a $10 M, 10 year commercial loan from World Business Capital Inc, a regulated commercial finance company that offers flexible term loans helping small and midsize businesses compete in the global marketplace.
The loan will be used to offer the bank a long term funding source for Victoria to support its small and medium-sized enterprise (SME) lending in Kenya. The loan has been guaranteed by US Agency Overseas Private Investment Corporation (OPIC), that enables American businesses invest in emerging markets.
Victoria Commercial Bank had earlier received Ksh500 million of subordinated tier II compliant loan from SwedFund, a Swedish development finance institution that would be used to improve lending to SMEs.
Speaking to Africa Business Community Dr. Yogesh Pattni, Chief Executive Officer of VCB, said,
“I am extremely delighted about the partnership between us and WBC culminating in a long-term loan of $10 million with the guarantee of OPIC. This credit facility reflects the good standing of VCB and its strong asset base. The financing also demonstrates the confidence of international lenders in the Kenyan banking sector. It is very humbling to note that VCB is the first institution in the Kenyan banking sector with which WBC has partnered. Nimai, a boutique investment banking and financial advisory firm that focuses on raising capital for financial institutions in emerging markets, was VCB’s financial advisor and provided valuable support and guidance for the transaction.” remarked.
“We are especially excited to enter the Kenyan market with a loan to VCB, a first-rate lending institution with a demonstrated commitment to servicing SMEs.” Rob Monyak, WBC’s Executive Vice President and Chief Lending Officer for Eurasia/Africa Lending.
Other banks such as KCB, Stanbic Bank Kenya and Cooperative Bank have received about Ksh36 B in April from international institutions owing to the incompatibility issued loans that are long-term compared to the deposits that are short term.
The lender is a mid-sized commercial bank, and was initially licensed in 1987 as a finance company, the asset base stood at Kshs. 124 Million, which was then regarded as a sound base for takeoff into the future. The deposits then stood at Kshs. 113 Million which reflected the confidence the market had in the Bank.
