Swedfund International, a development finance institution owned by the Swedish government, recently issued a seven-year, subordinated loan of USD 5 million to Victoria Commercial Bank, primarily for on-lending to small and medium-sized enterprises (SMEs). A portion of the funds will support the development of a system for Victoria Commercial to use to track its borrowers’ environmental impacts and the working conditions of borrowers’ employees. The loan is the bank’s first from a development finance institution.
Founded in 1987, Victoria Commercial reports total assets of KSH 26 billion (USD 259 million) and annual pre-tax profit of KSH 849 million (USD 8.4 million) as of yearend 2017.
The goal of Swedfund “is to combat poverty by creating jobs in poor countries.” As of 2016, it has SEK 4.1 billion (USD 470 million) in contracts outstanding to 64 firms in 28 countries.
Sources and Additional Resources
Swedfund press release
https://www.swedfund.se/en/about-swedfund/mynewsdesk/#/pressreleases/swedfund-invests-in-kenyan-bank-with-sme-focus-2489867
Victoria Commercial financials
http://www.victoriabank.co.ke/detailed-financials/
Swedfund financials
https://www.swedfund.se/media/1937/swedfund_integrated-report_2016_part_1.pdf
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