Equity Bank (Kenya) Limited

East Africa,Africa Financial services

Equity Bank was established in 1982 as a building society to serve the unbanked and to provide products and services that economically empower its customers. Its products include a diverse range and are targeted to specific needs including SME loans, microfinance and agribusiness loans.

  • Active
  • Exited

This investment was made when British International Investment was named CDC Group.

We are invested in Equity Bank (Kenya) Limited through Ninety One Africa Credit Opportunities Fund (Investec), which is managed by Investec Asset Management.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, British International Investment takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Exited
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries:
Kenya, Uganda
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Financial services
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
Ninety One Africa Credit Opportunities Fund (Investec)
Fund Manager:
Investec Asset Management
Start date

For direct investments, this is the date British International Investment committed capital to the business or project.

For funds, this is the date that British International Investment committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2018
End date

For direct equity investments, this is the date at which British International Investment exited the investment.

For debt investments, this is the date at which the final debt repayment was made.

For funds, this is the date at which the fund was terminated.

For underlying fund investments, this is the date at which the fund manager exited the investment.

:
December 2019
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Kenya

This investment was made when British International Investment was named CDC Group.

Our investment

We partnered with Equity Bank to increase access to financial services for small businesses and fund climate eligible projects in six countries across Eastern and Central Africa. Our investment comes alongside support from IFC, FMO, Symbiotics and ResponsAbility.

Impact

Avoid and reduce greenhouse gas emissions by providing access to finance to climate finance sectors (SDG 13a)

How?

Economic enabler: The syndicated facility will enable Equity Bank to extend credit toward renewable and climate-supportive projects that will contribute to reducing greenhouse gas emissions.

Stakeholder Geography Characteristics
Planet

Global

A range of climate-related projects e.g. solar systems, irrigation systems, clean cookstoves, energy efficiency equipment, renewable energy, green housing with EDGE certification

Scale Depth/Duration

Climate: $150 million in additional financing to green projects by 2026 (BII share one-third or $50 million) [soft target]. Equity Bank's overall climate portfolio expected to more than double, from $233 million in 2021 to $661 million in 2025.

  • Duration: Five-year i.e. the tenor of the facility.
  • Depth: Expected to be varied given range of climate projects supported.
Grid Score Contribution

1

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.

Risk
  • Execution risk: Relates to lack of: 1) Our experience of a directed tier 2 lending methodology; 2) Detailed appraisal of Equity Bank's climate projects, particularly adaptation projects.
  • Evidence risk: Relates to challenges in tracking the impact of tier 2 capital injection on the growth of specific areas, due to nature of product.
  • Efficiency risk: Relates to the risk of the loan being used for non-productive purposes.

Environmental and social aspects

We agreed an environmental and social (E&S) action plan focused on strengthening the integration of E&S risks management in the bank's lending activities and enhancing the bank's safeguarding policies.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa, East Africa
Countries:
Kenya, Uganda
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Financial services
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Debt
Start date

For direct investments, this is the date British International Investment committed capital to the business or project.

For funds, this is the date that British International Investment committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2020
Amount

For direct investments, this is the total amount that British International Investment has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that British International Investment has committed to the fund.

:
$87.5m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Kenya

We are now British International Investment