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Co-op Bank, IFC in healthcare equipment financing partnership


Branch of the Co-operative Bank along Haile Selassie Avenue, Nairobi. FILE PHOTO | NMG

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Summary

  • Businesses, including clinics, hospitals and laboratories with up to 300 employees, will have access to asset financing of up to 90% up to 200 million shillings.
  • The agreement signed under IFC’s Africa Medical Equipment Facility aims to provide small and medium-sized healthcare businesses with local currency loans for the purchase or rental of medical equipment.

Co-op Bank #ticker:COOP has partnered with the International Finance Corporation (IFC) to offer healthcare business loans on more favorable terms.

Businesses, including clinics, hospitals and laboratories with up to 300 employees, will have access to asset financing of up to 90% up to 200 million shillings.

The agreement signed under IFC’s Africa Medical Equipment Facility aims to provide small and medium-sized healthcare businesses with local currency loans for the purchase or rental of medical equipment.

“Post-pandemic recovery must be supported at all levels of the health sector,” said Amena Arif, IFC Country Manager for Kenya at the launch of a training program for small businesses as part of Medical Equipment Facility.

The financed asset will be the primary collateral and comprehensive insurance coverage will be provided by Co-op Bank Bancassurance.

The repayment period for loans granted under the program is 60 months instead of the usual 36 months, while the interest rate is 10% compared to the banking sector average of 12.1%.

As part of the program, the global financier has also partnered with original equipment manufacturers and the Kenya Healthcare Federation to provide training on the procurement of business-critical medical equipment.

Philipps, GE Healthcare and Karl Storz are the first participating medical device manufacturers, with plans to include more suppliers over the course of the year.

Training healthcare SMEs will enable them to navigate the planning, budgeting and procurement process to access the advanced medical equipment they need to serve patients. The training program is supported by the Norwegian government.

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