The International Finance Corporation (IFC) is to provide a KSh2.9 billion loan to Equity Bank’s Democratic Republic of Congo (DRC) subsidiary to support lending to small and medium enterprises (SMEs).
The funds will support Equity Banque Commerciale du Congo (Equity BCDC) to de-risk and scale up its lending to small businesses, particularly the women-owned SMEs in the DRC.
“The project consists of an up to $25 million risk-sharing facility providing a 50 percent loss coverage for up to $50 million SME loan portfolio originated by Equity Banque Commerciale du Congo,” the World Bank’s private-sector lending arm said in a disclosure.
“The team expects the RSF to be complemented by advisory services aimed at strengthening the bank’s holistic risk management framework, SME origination, underwriting, monitoring, and credit risk management capabilities. The project will be committed in two separate tranches,” it said.
IFC said Equity BCDC will also benefit from advisory services towards the SME lending initiative
Equity BCDC, the second-largest bank in DRC, is a product of Equity Group’s expansion strategy of pursuing growth and diversification in the regional market.
It stemmed from a merger between Equity Bank Congo and Banque Commerciale du Congo (BCDC), which was approved in December 2020.
The bank has a balance sheet of $3.7 billion and a nationwide footprint of 70 branches, and 203 ATMs, serving a customer base of more than one million.
BCDC offers traditional banking services to MSMEs, and retail clients, both domestic and from the Congolese diaspora, corporates, and institutional clients.
English
Arabic
Chinese (Simplified)
French
German
Italian
Russian
Spanish
Swahili