Muriuki said they had finalised on the joint venture agreement with the Government of South Sudan which will hold 49 per cent shareholding of the subsidiary.
“The Co-operative Bank of South Sudan is now a reality. We expect to open the first branch early next year,” Muriuki said. The government will later sell the stake to Co-operatives societies in South Sudan, once they are established.
Kenya Commercial Bank and Equity Bank are already the South Sudan. Co-operative bank yesterday signed a $60 million loan (Sh 5.1 billion) loan agreement with International Finance Corporation.
The money will be used for lending to Small and Medium Enterprises in agribusiness and import/export trade sectors. “This will be targeting borrowers whose income is in dollars. It will thus be offering a hedge against foreign currency fluctuation losses,” Muriuki added.
IFC also extended a $5 million(Sh425 million) trade line through global Trade Finance Program. this guarantees emerging markets banks with guarantees to cover risks associated with trade. Co-operative Bank recently received another 70 million Euros (Sh7.5 billion) from European Investment Bank.
The Star, Nairobi