A fast-growing Kenyan bank has said it plans to tap Uganda's letter of credit (L/C) market as it seeks to extend its reach across the African continent.

Nairobi Stock Exchange-listed Equity Bank focuses on providing services to customers hitherto underserved by banks.

L/Cs targeted

Discussing the bank's activities in Uganda, chief executive James Mwangi said the bank was particularly interested in the country's export businesses.

"Equity Bank will tap into the business of issuing L/Cs and guarantees to exporters," Mwangi told local media.

Capital boost

Equity Bank has seen its capital substantially boosted over recent years and is currently pursuing an expansion strategy across ten African countries.

In December 2007, the Africa-focused private investment firm Helios Investment Partners completed a US$178.7 million acquisition of a 24.99% interest in Equity Bank.

China funding

In May, China provided Equity Bank with US$4 million funding to provide loans to small- and medium-sized enterprises (SMEs).

This coincided with Kenya becoming the first African country to benefit from a US$5 billion Chinese SME development fund.

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