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Family Bank has secured Sh 3.33Billion (30Million Euros) to provide lower-cost long term loans to small and medium sized businesses from European Investment Bank barely two weeks after receiving a similar facility of Sh1billion from a Netherlands Financier – Oiko Credit International.
It is the second time the lender has received a credit facility by the European lender – with the first tranche of Ksh 2Billion having been secured two years ago with the latest funding expected to further expand the SME portfolio of the Bank currently the main booster of its performance.
Family Bank Managing Director Peter Munyiri said the second tranche by the European Investment Bank was a stamp of approval of the Bank’s SME support business model.
“We are excited that EIB’s confidence in the Bank has enabled us to secure close to Ksh6Billion in two tranches – in only two years – being catalytic in mobilising significant amount of funds to help spur the SME sector. This sector forms the bulk of revenue-generating and employment creation hence should be enabled to play their rightful role in the economy,” he said.
Meanwhile the bank has deployed a multi-pronged capital raising strategy – with a mix of both debt through the Ksh10Billion Bond – whose first tranche is currently trading at the NSE – and equity financing with increased global lenders’ interest.