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Tag: Equity Group

  • Equity Group emerges top global climate financier 

    Equity Group emerges top global climate financier 

    Equity Group has emerged as the top financial institution globally with the highest number of transactions for climate-related financing.

    During the International Finance Corporation (IFC) 2023 Climate Assessment for Financial Institutions (CAFI) Awards for Climate Reporting, the giant lender was awarded for having supported a total of 47,593 households and businesses in adopting adaptive and mitigating solutions to address the negative impacts of climate change.

    The support included availing climate loan facilities to for households to purchase energy-efficient cookstoves in the retail sector as well as loans funding of renewable energy distribution from renewable sources, including hydro, geothermal, and wind.

    “Equity is committed to playing a significant role in climate change mitigation and adaptation by providing appropriate financing and capacity development that helps the region decarbonize and build resilience,” said Dr James Mwangi, Equity Group Managing Director.

    In ten months of the year to October this year, Equity Group said it had disbursed Ksh 24.7 billion worth of climate financing to various projects out of which, climate adaptation and water efficiency accounted for 66pc, energy efficiency and transport 28pc and renewable energy 6pc.

    “By being recognized as the Bank with the most transactions, Equity is creating a broader impact and reach for local communities and businesses. The Bank continues to work towards supporting Kenya’s goal of combating climate change by reducing its carbon emissions by 32% by 2030 and building resilience, as outlined in the National Determined Contribution,” added Dr Mwangi.

    A significant proportion of the funding was also used to support climate-smart agriculture, building resilience for farmers and farming ecosystems.

    Equity Bank Kenya entered into a partnership with the IFC in 2019 for a Ksh 15.3 billion ($100m) facility for onward lending to climate-related projects. The bank matched the IFC facility which it says demonstrates its commitment to climate finance.

    CAFI is a tool developed by the IFC to enable its clients and partners across 210 countries to report on their financing activities for climate-related projects.

    “IFC’s work with banks and other financial institutions helps scale up climate finance activities and measure investments earmarked for climate, vital for our clients to realize their climate impact,” added Tomasz Telma, Global Director IFC Financial Institution Group.

    As of June 2023, IFC had committed $15.2 billion to climate-related projects through more than 210 emerging market financial institution partners, leveraging an additional $5.8 billion.

  • Equity Group buys Rwanda’s Cogebanque for Ksh 6.7B

    Equity Group buys Rwanda’s Cogebanque for Ksh 6.7B

    Equity Group Holdings has completed full acquisition of Rwanda’s fifth largest bank, Compagnie Générale de Banque (Cogebanque) Plc for Ksh 6.7 billion.

    The transaction follows completion of corporate and regulatory approvals in Kenya and Rwanda on November 30, 2023 as Equity Group now holds 198,250 shares representing 99.125pc of the issued share capital of Cogebanque.

    Equity Group Chief Executive Officer Dr James Mwangi has termed the new acquisition as another milestone in regional expansion and will help bolster Rwanda’s financial services landscape.

    “The eventual merger of Cogebanque and Equity Bank Rwanda will consolidate Equity Group’s position in Rwanda and support delivery of its overarching strategy, the Africa Recovery and Resilience Plan,” he added.

    Equity Group and Cogebanque entered into a binding term sheet on June 14, 2023 for the acquisition of 91.93pc of issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Ms. Judith Mugirasoni (the Sellers).

    The giant lender also offered to acquire all the remaining shares from the rest of the Cogebanque shareholders, intending to acquire up to 100pc of the issued shares of Cogebanque.

    On July 28, 2023, EGH entered into a share purchase agreement with the Sellers by which it agreed to acquire 183,854 shares at a price of Rwanda Francs 297,406 per share (Ksh 6.7b)

    “The consolidation of Equity Bank Rwanda Plc and COGEBANQUE will create a stronger and more resilient banking institution better equipped to serve the needs of the people of Rwanda and will contribute to Rwanda’s economic growth and development,” said Dr. Uzziel Ndagijimana, Rwanda Minister of Finance and Economic Planning.

  • Equity Group to invest 2pc of earnings in sustainable projects

    Equity Group to invest 2pc of earnings in sustainable projects

    Equity Group targets to invest at least 2pc of its revenue in sustainable projects in seven markets it currently operates in.

    According to the lender, loans to Micro, Small and Medium Enterprises (MSME) under the Young Africa Works Program totaled  Ksh 223.1 billion disbursed to 246,701 businesses which in turn helped encourage entrepreneurship and create 1.2 million jobs.

    Additionally, the lender disbursed loans totaling Ksh 73.3 billion to support 3.98 million farmers and MSMEs in food and agriculture.

    Speaking during the launch of Equity Group 2022 Sustainability Report, Chief Executive Officer Dr James Mwangi said the bank is investing heavily in sustainable projects and called for more collaborations in enhancing food security, healthcare services, and education.

    The report highlights pay parity across the organization, where it indicates men are still getting paid more than women doing the same job in Kenya and Tanzania at 52pc as compared to DRC, South Sudan, Rwanda And Uganda an issue that is closely been monitored to ensure pay parity continues to improve across the group.

    The report indicates that Equity Group planted 21.8 million trees by the end of 2022 and trained farmers on climate-smart agriculture.

    Speakers urged financial institutions to consider collaboration with counties in the financing locally-led climate action program.