IFC Extends Financing to Guaranty Trust Bank to Support Small and Medium-sized Businesses in Kenya

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Nairobi, Kenya, January 24, 2022 — To help Kenyan businesses access more financing, including those with cash flows disrupted by the COVID-19 pandemic, IFC has extended a loan to Guaranty Trust Bank (Kenya) Ltd, a subsidiary of the Guaranty Trust Group, for on-lending to local businesses in the country.

GTBank Kenya will provide access to finance mainly to small and medium-sized enterprises (SMEs) in the trade, consumer goods, pharmaceuticals, and manufacturing sectors, among others, helping them retain and create jobs, and strengthen their operations.

IFC's $15 million loan to GTBank Kenya is part of the $8 billion IFC Fast Track COVID-19 Facility launched in 2020. The facility is designed to support existing IFC clients in emerging markets affected by the economic fallout from COVID-19.

"The IFC loan will help the Bank meet the working capital and trade-related needs of businesses, especially SMEs that are part of our core clientele. These businesses were adversely affected by the pandemic and are now recovering and reviving as the economy opens up, therefore requiring the support of the Bank through access to credit," said Olabayo Veracruz, Managing Director, GTBank Kenya. "We hope to on-lend the facility to customers in the trade, FMCG, manufacturing, and pharmaceutical sectors primarily to fund working capital needs over the next year."

"IFC is committed to supporting Kenya's private sector, including strengthening its financial sector in order to help the country's smaller businesses to access more financing. Our partnership with GTBank Kenya will deliver funds to businesses, allowing them to emerge stronger from the COVID-19 crisis," said Amena Arif, IFC Country Manager for Kenya.

Pandemic-related disruptions caused Kenya's real GDP to contract in 2020, with the country's smaller businesses hit hard by supply chain disruptions and reduced economic activity. Although Kenya returned to pre-pandemic growth levels in 2021, 2022 is also proving challenging and smaller businesses still need added support to weather ongoing uncertainties.

IFC is committed to supporting Kenya's long-term economic growth. IFC's investment portfolio in Kenya stood at $940.1 million as of June 30, 2021 with most investments in the finance, manufacturing, agribusiness, and services sectors.

About IFC
IFC – a member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
 
About Guaranty Trust
Guaranty Trust is a Proudly African, Truly International institution leading the evolution of financial services in the continent. It is a foremost Financial Services Group headquartered in Lagos, Nigeria, and listed on the Nigeria and London Stock Exchange.

Founded three decades ago by a group of young, vibrant and dynamic professionals determined to transform traditional banking, Guaranty Trust has been on a mission to make financial services accessible to all Africans in ways that truly serve people's needs and help businesses thrive. Guaranty Trust has banking subsidiaries in Nigeria, Cote D'Ivoire, Gambia, Ghana, Liberia, Kenya, Rwanda, Tanzania, Uganda, Sierra Leone and the United Kingdom. The Group currently employs over 12,000 professionals.

At the end of 2020, alongside leading the industry in innovation and service delivery, Guaranty Trust was the most profitable banking group in Nigeria with best in class Return on Equity and other key financial metrics. In April 2021, the reorganization of Guaranty Trust Bank Plc to a financial holding company, Guaranty Trust Group Holding Company Plc (GTCo Plc), was completed as part of the company's strategy to position for future growth and deliver benefits beyond banking to the people, communities and businesses who depend on the value we create to thrive.

Guaranty Trust Bank (Kenya) Ltd commenced operations in the year 2013 following an acquisition of the then Fina Bank Group. It has two subsidiaries in East Africa; Guaranty Trust Bank (Uganda) Ltd with a 100% shareholding and Guaranty Trust Bank (Rwanda) Plc with a 96.38% shareholding. For more information, please visit https://www.gtbank.co.ke/

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