Victoria Commercial Bank
Introduction
Swedfund has made a second investment of USD 7.5 million in Kenya's Victoria Commercial Bank (VCB) PLC. The loan will further strengthen the bank's ability to finance small and medium-sized enterprises (SMEs), which play a vital role in Kenya's economy by creating jobs and driving growth.
Access to long-term finance remains one of the biggest challenges for SMEs in developing countries. Swedfund’s investment aims to provide SMEs in sectors such as manufacturing, trade and agriculture with greater access to capital, enabling them to develop and expand their business.
Read more in our press release: Swedfund continues to support SME lending in Kenya
First investment made in 2018.
Related links:
Swedfund Policy For Sustainable Development
Swedfund E&S Categorisation
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Sector
Financial Inclusion
Financial Inclusion invests in, amongst others, regulated banks and microfinance institutions to reach out more broadly and effectively.
Value creation
Impact
The investment contributes to financial inclusion, jobs and other income-generating opportunities locally. The investment increases women's economic empowerment by promoting female leadership, offering products and services that specifically benefit women and girls, and providing women with jobs and finance.
Additionality
Swedfund’s investment is financially additional as it is made in a challenging context associated with risk and where access to capital is limited. The investment is value additional through active value creation where issues such as women’s economic empowerment, business integrity and environmental and social issues are prioritised.
ESG Summary
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is High Risk (FI-A) based on potential E&S risks and impacts inherent to the high risk sectors in the lending portfolio and contextual risks in the target country.
ESG mitigation measures
Swedfund is supporting the company to further develop its environmental and social management systems (ESMS) to address issues related to sustainability processes. Swedfund is also supporting the company to develop its business integrity management system.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1,2, 3-8 are applicable.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.