Rwanda bank gets $5m for mortgages
Sep 16, 2011
KIGALI - The International Finance Corporation (IFC), a member of the World Bank Group, has invested $5m in KCB Bank Rwanda to help the bank provide funding for affordable mortgages for home owners and borrowers in Rwanda.
KIGALI - The International Finance Corporation (IFC), a member of the World Bank Group, has invested $5m in KCB Bank Rwanda to help the bank provide funding for affordable mortgages for home owners and borrowers in Rwanda.
The financing is part of a total package of $105m IFC invested to support the bank’s regional SME and mortgage lending business.
The loan will be denominated in Rwanda francs, arranged through a unique swap agreement with the National Bank of Rwanda, and designed to mitigate risk for borrowers by limiting foreign currency exposure. The swap facility is expected to encourage long-term local currency funding to spur economic development.
KCB will use the loan to support its housing finance activities in Rwanda, generating economic growth and job creation through linkages with other key sectors, such as construction and capital markets.
Martin Oduor-Otieno, the KCB Group chief executive, said, “IFC’s credit line will enable KCB Group to increase its lending programme to SMEs and expand our mortgage portfolio in the region.â€
Jean-Philippe Prosper, the IFC director for East and Southern Africa, said: “Housing finance plays an important role in IFC’s overall financial sector strategy and is aimed at reducing poverty and improving living standards.
“In emerging economies, a mortgage allows people to have shelter and buy assets, which is often the largest investment a family may make.â€
Prosper added that increased housing finance would have a multiplier effect by giving rise to new jobs, entrepreneurs and infrastructure in Rwanda.
IFC activities in housing finance include investment services, advisory services, and resource support. IFC addresses each country’s needs in context of its financial sector.
Agencies
The financing is part of a total package of $105m IFC invested to support the bank’s regional SME and mortgage lending business.
The loan will be denominated in Rwanda francs, arranged through a unique swap agreement with the National Bank of Rwanda, and designed to mitigate risk for borrowers by limiting foreign currency exposure. The swap facility is expected to encourage long-term local currency funding to spur economic development.
KCB will use the loan to support its housing finance activities in Rwanda, generating economic growth and job creation through linkages with other key sectors, such as construction and capital markets.
Martin Oduor-Otieno, the KCB Group chief executive, said, “IFC’s credit line will enable KCB Group to increase its lending programme to SMEs and expand our mortgage portfolio in the region.â€
Jean-Philippe Prosper, the IFC director for East and Southern Africa, said: “Housing finance plays an important role in IFC’s overall financial sector strategy and is aimed at reducing poverty and improving living standards.
“In emerging economies, a mortgage allows people to have shelter and buy assets, which is often the largest investment a family may make.â€
Prosper added that increased housing finance would have a multiplier effect by giving rise to new jobs, entrepreneurs and infrastructure in Rwanda.
IFC activities in housing finance include investment services, advisory services, and resource support. IFC addresses each country’s needs in context of its financial sector.
Agencies