Dutch FMO Provides USD 40 Million Loan to I&M Bank Kenya, to Boost Lending to SMEs
Dutch FMO Provides USD 40 Million Loan to I&M Bank Kenya, to Boost Lending to SMEs
Press Release
The Hague, 1 October 2018 – Dutch Development Bank FMO has granted a loan of USD 40 million to I&M Bank Kenya, to boost lending to small and medium-sized enterprises in the country. I&M Bank already has a long and successful track record in SME finance in the region and has been a client of FMO since 2010.
The loan has a five-year tenor. The bank has a loan portfolio of approximately USD 1.2 billion of which almost 30% consists of loans to SME-customers.
Linda Broekhuizen, Chief Investment Officer of FMO, said: “I&M Bank Kenya really fits our strict selection criteria. The bank has good performance, a strong reputation and has been successful in SME lending. By supporting the expansion of its operations, FMO can help give the local economy an extra boost. ”
I&M Bank Kenya is the flagship of a successful regional banking group. FMO has also granted loans to I&M Bank Tanzania, 70% owned by I&M Bank Kenya. The main sectors in the portfolio of I&M Bank Kenya are manufacturing, trade, real estate and building and construction.
At the end of 2016 the bank launched a five-year strategy which aims to double the bank’s market share by 2022, partly through digitalizing the business by improving online sales and servicing. I&M Bank Kenya is fully owned by I&M Holdings (IMHL), a listed non-operating entity.
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About FMO
FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.2 billion spanning over 82 countries, FMO is one of the larger bilateral private sector developments banks globally.
About I&M Group
I&M Bank Limited is a leading commercial bank in Kenya. With a rich history spanning over 40 years and offering a full range of corporate, personal, premium, business and alternative banking products, I&M Bank is a dominant player in the East African banking industry. Since its inception in 1974, the Bank has evolved from a community financial institution to a publicly listed Kenyan-based regional commercial bank offering a full range of Corporate, Business, Premium Client and Personal banking services.
I&M Bank is wholly owned by I&M Holdings Limited (IMHL) which is listed on the Nairobi Stock Exchange. IMHL was listed on the Nairobi Securities Exchange (NSE) soon after it was incorporated in August 1950 and has the distinction of being one of the oldest companies to list on the (NSE). It is regulated by the Capital Markets Authority, the Central Bank of Kenya as a non-operating bank holding company and the Nairobi Securities Exchange. CDC Group plc, a development finance institution wholly owned by the government of the United Kingdom owns approximately 10.68% of IMHL.
IMHL operates in four countries: Kenya, Tanzania, Rwanda and Mauritius and has a market capitalization of circa Kshs 51.5 billion with Total Assets of Kshs 240 billion as at December 2017, a branch network of 84 and a staff complement of over 1850 spread across the 4 countries
