KCB Group set to raise Sh336billion in green portfolio loans
The Kenya Commercial Bank (KCB) has issued a Sh336 billion in green loans over the last one-year to support projects that protect the environment.
Transition to green financing helped push the bank’s green loan book portfolio from 4 per cent in 2020, to 8.4 per cent in 2021.
Sectors invested heavily include real estate, renewable energy, transport, manufacturing and agricultural.
The bank targets to increase its green portfolio to 25 per cent by 2025.
“KCB has long understood the risk climate change poses to our communities. But with that risk, also comes opportunity such as providing capital to breakthrough new technologies, helping to finance the increased adoption of resource efficiency, renewable energy and supporting the infrastructure that will make our communities more resilient,”
“The bank will use its original scale, reach and influence to deploy capital to help accelerate the transition to a low-carbon, sustainable economy,” KCB Group Chief Executive Officer (CEO) Paul Russo said.
Amid climatic changes, demand for environmental-friendly credit solutions have been rising, opening a huge window for banks to tap.
In October 2022,International Finance Corporation (IFC) signed a partnership to support more businesses addressing climatic changes.
IFC agreed to extend a Sh18.16 billion ($150 million) loan to KCB to fund the growth of the bank’s climate finance portfolio.
“While there is still much more to do, our significant increase in sustainable activities demonstrates our commitment and ability to lead by example and drive social and environmental change,”
“Progressively, we are making tangible and meaningful progress towards achieving a more sustainable future. We do this because we believe that the market will ultimately reward purpose – driven companies that have responsible business practices and take a long – term view of the current global problems,” said Russo.
In its latest Sustainability Report, the lender said that it had helped cut carbon footprint by 11.5 percent, coming at a time when the firm seeks to reduce environmental pollution.
According to a report titled Progressive Action for Sustainable Development, the bank’s resource consumption fell 17 per cent as the firm cut use of fuel, water, electricity and paper.