Investment and Mortgages (I&M) Bank, a subsidiary of Kenya-based I&M Group, recently signed an agreement with Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, whereby FMO will deploy a guarantee from its Nasira risk sharing facility to encourage USD 15 million in lending by I&M Bank to micro-, small and medium-sized enterprises (MSMEs) in Kenya that were impacted negatively by the COVID-19 pandemic to “accelerate their business growth and support their expansion efforts.”
Founded in 1974, I&M Bank is headquartered in Kenya and serves individuals as well as companies of all sizes with deposits, payment cards, money transfers, investments, insurance and trade finance and other loans. As of 2021, its total assets amounted to USD 3.1 billion. The I&M Group holds investment advising businesses, an insurance company and subsidiary banks in Kenya, Mauritius, Rwanda, Tanzania and Uganda.
Founded to support youth, women and migrant entrepreneurs in Sub-Saharan Africa, Nasira now also targets MSMEs negatively impacted by the COVID-19 pandemic. Its guarantees enable local banks to serve borrowers who otherwise are perceived as too risky. Nasira, which is managed by FMO, was launched in December 2018 by FMO and the EU with an initial volume of EUR 75 million (USD 92 million) and a term of four years.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN Sustainable Development Goals by funding capacity development and placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of December 2021, FMO reports a total committed portfolio of EUR 9.7 billion (USD 10.2 billion), having brought in net profit of EUR 491 million (USD 518 million) during that year.
By Hasnat Aslam, Research Associate
Sources and Additional Resources
I&M Bank homepage
https://www.imbankgroup.com
FMO homepage
https://www.fmo.nl
Previous MicroCapital story on Nasira
https://www.microcapital.org/microcapital-brief-equity-bank-kenya-secures-50m-nasira-loan-guarantee-from-fmo-for-covid-19-support-to-agricultural-msmes-led-by-youth-women/
Previous MicroCapital story on FMO
https://www.microcapital.org/microcapital-brief-bic-bred-fmo-commit-30m-in-working-capital-for-sucafina-to-expand-coffee-purchases-from-smallholder-farmers-in-africa-colombia/
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