Total local funding exceeds Sh9 billion, led by private placement programmes arranged by Dry Associates Investment Bank. Mogo deputy country manager, Branton Mutea/ HANDOUT MOGO Kenya has doubled its local bank funding to Sh1.6 billion, up from Sh800 million, following expanded credit facilities from Ecobank Kenya and I&M Bank.
The company’s total local funding now stands at more than Sh9 billion, the majority raised through one-to three-year private placement programmes arranged by Dry Associates Investment Bank, which have drawn a growing number of Kenyan institutional investors into Mogo Kenya’s investor base.
Launched earlier this year, the Dry Associates programmes give institutional investors, such as pension funds, mutual funds and asset managers and insurance companies, access to Kenyan-shilling, asset-backed lending that finances motorcycles, cars, tuk-tuks and smartphones for individuals and small businesses.
The programmes are secured by a guarantee from Mogo’s parent company, Eleving Group, and by loan collateral, and continue to attract new institutional participation as Mogo builds out its local funding base. Institutional investors interested in the programmes can contact Dry Associates Investment Bank, it said.
Following the funding milestone, Global Credit Rating Company (GCR Ratings) assigned Mogo Kenya a long-term issuer rating BBB-(KE) and a short-term issuer rating of A3(KE). Mogo’s bond programmes were also assigned ratings of A(KE)(EL). All ratings carry a stable outlook.
GCR cited sustained strengthening in earnings, an improved competitive position and growth in Mogo’s loan portfolio, alongside the expansion of motorcycle and tuk-tuk financing, the resumption of smartphone financing, and continued support from Eleving Group S.A.
For institutional investors, the assignment provides an independent assessment of both Mogo’s credit profile and the programmes through which it raises local funding. “Since Mogo’s first programme launch in 2022, we have seen steadily growing interest from institutional investors.
Institutions are looking for local-currency opportunities that connect their capital to the real economy, with a clear structure, credible security and transparent reporting,” said James Dry, managing director, Dry Associates Investment Bank.