Summary of Proposed Investment
Project Number
24283
Company Name
I AND M BANK LTD
Date SPI Disclosed
May 4, 2005
Country
Kenya
Industry
Financial Markets
Projected Board Date
Jun 6, 2005
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 15, 2005
Signed : Jun 20, 2005
Invested : Sep 16, 2005
Project Description
The project aims to provide a loan to Investments and Mortgages Bank (Kenya) Limited (I&M or the bank) of up to $5 million to support the bank’s growing SME client base and export-oriented segment in Kenya. The proposed loan will have a six year maturity, with a one-year grace period. IFC will also consider providing I&M with equity of up to $2 million to shore up the bank’s core capital.
The proceeds from the loan will enable I&M to better meet increasing demand from its SME client base. I&M has also effectively targeted medium-sized corporate customers in the export segment. The bank has successfully grown this market niche, but is now faced with growth constraints due to a lack of suitably tenured, hard currency financing. The project would further foster competition in the local credit market, thus reducing costs for the private sector. IFC financing will underscore the bank’s regional expansion strategy.
I&M has requested to participate in IFC’s Global Trade Finance Program as an L/C issuer. The trade facility will enable I&M to increase its limits with confirming banks based on an IFC guarantee. IFC’s proposed exposure to I&M under the trade facility would be up to $5 million, with the final exposure to be maintained within policy determined levels.
The proceeds from the loan will enable I&M to better meet increasing demand from its SME client base. I&M has also effectively targeted medium-sized corporate customers in the export segment. The bank has successfully grown this market niche, but is now faced with growth constraints due to a lack of suitably tenured, hard currency financing. The project would further foster competition in the local credit market, thus reducing costs for the private sector. IFC financing will underscore the bank’s regional expansion strategy.
I&M has requested to participate in IFC’s Global Trade Finance Program as an L/C issuer. The trade facility will enable I&M to increase its limits with confirming banks based on an IFC guarantee. IFC’s proposed exposure to I&M under the trade facility would be up to $5 million, with the final exposure to be maintained within policy determined levels.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Arun Mathur, Chief Executive Officer
Investments and Mortgages Bank
P.O. Box 30238
00100 Nairobi
Kenya
Investments and Mortgages Bank
P.O. Box 30238
00100 Nairobi
Kenya