Gulf Bank gets IFC funding for SME loans

IFC, a member of the World Bank Group, will invest Sh425 million ($5 million) in Gulf African Bank for corporate finance and lending to small and medium businesses in East Africa. The investment marks IFC’s first engagement with an islamic finance institution in sub-Saharan Africa. In addition to the equity investment, a further Sh255 million ($3 million) trade line will be availed to Gulf African Bank under IFC’s Global Trade Finance Programme. The programme complements the capacity of banks to deliver trade financing by mitigating risk in new or challenging markets...