Nairobi, July 20, 2012—IFC,
a member of the World Bank Group, is lending up to $9 million to two units
of Alios Finance Group to provide leasing, equipment loans and hire purchase.
The loans will increase access to finance for small and medium firms in
Kenya and Tanzania.
IFC will loan up to $4 million, in both Tanzania shillings and U.S. dollars,
to Alios Finance Tanzania Ltd., and up to $5 million, in both Kenya shillings
and U.S. dollars, to Alios Finance Kenya Ltd. The loans will help the Pan-African
group expand into new markets and provide financing for small and medium
businesses working in transportation, manufacturing and services in these
two important economies of East Africa. Both loans have a five-year tenor.
The local currency portions of the loans would be financed using
the swap market.
Local currency financing is a priority for IFC because it helps develop
local capital markets. The recent financial crises demonstrated that even
stable exchange rate regimes may not hold in times of crisis. By
providing loans in local currency, IFC protects firms from foreign-exchange
risk, enabling them to focus on their core business and growth.
"In markets like Kenya and Tanzania, where small businesses lack access
to finance; leasing and hire purchase help firms acquire the equipment
they need,” said Aida Kimemia, Principal Investment Officer for IFC. “Providing
suitable local currency instruments, as well as helping small businesses
produce jobs are strategic priorities for IFC.”
Jan Albert Valk, group Chief Executive Officer of Alios Finance, said,
“The partnership with IFC will enable Alios Finance Group increase the
number of finance solutions we provide to Kenyan and Tanzanian entrepreneurs.
By offering leasing, equipment credit and hire purchase, Alios Finance
hopes to contribute to the social and economic development of these countries.”
Leasing is a core component of IFC’s strategy for helping develop financial
markets. Over the past 30 years, IFC has financed 126 leasing projects
in 58 countries globally.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
About Alios Finance
ALIOS Finance is a Pan-African, specialized
asset finance company with a mix of African and European investors. The
group has been present in Africa since 1956. The current operations are
in Burkina Faso, Cameroon, Gabon, Ivory
Coast, Kenya, Mali,
Tanzania and Zambia.
In each of these countries, Alios Finance has developed successful finance
solutions, and has contributed to the social and economic development of
these countries. For
more information, please visit: www.alios- finance.com