The project entails a USD 70 Million Integrated Facility (Facility) consisting of: (i) aTrade Finance Transaction Guarantee (TG) Facility that will allow the Bank to provide up to 100% guarantee to Confirming Banks (CBs) for the non-payment risk arising from the confirmation of Letters of Credit, and similar trade finance instruments issued by Diamond Trust Bank Kenya limited: (ii) USD 10 million blended line of credit (LoC) (USD 5 million SEFA concessional loan and USD 5 million ADB loan) to support it augment its green lending portfolio through affordable finance for Energy Efficiency (EE) and Renewable Energy (RE) technologies The LoC financing is ring-fenced to the targeted sub-sectors and eligibility criteria (iii) Technical assistance (TA) support to DTB-K and project developers curated to maximize the bankability of pipeline projects, reduce technical barriers, and build DTBs capacity to invest in RE and EE projects. SEFA-funded TA and concessional finance and will support DTB-K in rolling-out green financial products and support the industry’s transition to clean energy. Specifically, the Borrower is targeting to grow its lending to green projects to 20% of its loan book by 2030. The above instruments will complement each other e.g. the TG will complement the LOC by supporting the import of inputs used in the energy sector which are procured by letters of credit.

Kenya

African Development Bank Group

Africa Sub-Saharan Africa

Chemicals Energy Roads and Highways-Bridge Printing and Publishing Construction Energy-Power and Electrical Computer Hardwares and Consumables

15.12.2024

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