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Chase Bank has today sealed a risk sharing agreement with the French Development Agency (AFD) to offer up to EUR 2 million (Kes 230Million) in loans, to Small and Medium Enterprises (SMEs) on a portfolio guarantee basis.
Coming hot on the heels of the Bank’s recent line of credit agreement of Khs 3.4 billion (USD40 million) with Proparco, a private sector subsidiary of AFD, Chase Bank has been actively stepping up in strengthening and scaling up its loan offering to the sector.
This is the first time AFD has signed such a risk sharing partnership with Chase bank. This facility unlocks opportunities for the SMEs to access credit on favourable terms, hence fostering growth and employment, which are much needed in the current economic environment.
According to the Chase Bank’s Deputy Chief Executive Officer, Paul Njaga, the Bank’s move to engage in such strategic alliances is aimed at enabling the SME sector to enjoy quicker access to financing. He noted that under the portfolio guarantee arrangement, the Bank will match AFD’s undertakings in every transaction, bringing the total maximum portfolio to EUR 4million (Kes 500Million). He disclosed that the facility is based on a 50/50 risk sharing agreement.
