Standard Bank Group arranges USD 202 million sustainability-linked, multi-currency funding for M-KOPA

M-KOPA aims to empower people by providing financial inclusion credit solutions for underbanked customers in East and West Africa, which affords customers the opportunity to access high-quality smartphones, energy-efficient, solar powered systems and financial service products through digital micropayments, thereby stimulating financial access and inclusion on the continent.

Since its inception in 2010, the company has provided over USD 1 billion in credit to over 3 million customers and has ambitions to reach a target of over 10 million customers by 2025, as well as to expand further into various African markets, including Nigeria and Ghana.

Standard Bank Group (through its subsidiaries Stanbic Bank Kenya and Stanbic Bank Uganda) acted in its capacity as mandated lead arranger for 2 sustainability-linked, multi-currency facilities. This historic transaction is valued at a total of USD 202 million, with USD 165 million in Kenya and USD 37 million in Uganda, and is the largest syndicated facility in the fintech sector in Africa and the largest syndicated sustainable finance facility in East Africa. The funding comes with embedded environmental and social key performance indicators, spanning from reducing CO2 emissions, unlocking credit to underbanked customers and providing women with access to high quality smart-phones.

As an African fintech business that has achieved significant scale, M-KOPA serves as testament to Africa’s economic potential as well as its potential as an investment destination for foreign investors. For a business like M-KOPA’s to expand geographically, it requires a reliable mechanism to raise funding in multiple currencies. Standard Bank’s ability to structure and arrange solutions that cater for several currencies means M-KOPA is well equipped to hedge the risk of foreign exchange in its funding structure.

Standard Bank remains committed to driving Africa’s sustainable growth, and this transaction will support M-KOPA’s ambitions to promote financial inclusion and accelerate economic growth on the continent.