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IBTC Bank secures $90m credit for SMEs

IBTC Bank secures $90m credit for SMEs

Stanbic IBTC Bank has concluded a $90 million line of credit facility from the FMO (NederlandseFinancierings-MaatschappijvoorOntwikkelingslanden N.V).

The purpose of the facility is for Stanbic IBTC Bank to on-lend to small and medium sized companies for the financing of projects in the infrastructure sector, which include agriculture, oil and gas, power, ports, telecom companies, etc. within Nigeria. The facility will run for a term of 5 years.

The facility was provided to Stanbic IBTC Bank by FMO along with European Financing Partners (EFP) and DEG – Deutsche Investitions- und EntwicklungsgesellschaftmbH).

The primary lender, FMO, is a Dutch development bank that was established in 1970 by the Dutch Government, commercial banks, the national employers’ association, labour unions, and private investors, in order to make investments in private sector projects within developing countries and emerging markets.

The Chief Executive of Stanbic IBTC Bank, Mr. Yinka Sanni, said the commitment of the lenders shows the confidence they have in the Stanbic IBTC brand, saying that the facility will enable the bank continue its SME sector’s growth efforts and move the economy forward.

Linda Broekhuizen, FMO’s CIO said, “This second facility to Stanbic IBTC Bank is further testimony to the long and good relationship between the Standard Bank Group and FMO. This syndicated loan facility will assist Stanbic IBTC Bank in expanding its leading role in financing of infrastructure development and providing long term funding to small and medium sized companies, contributing to job creation in Nigeria.”

The secondary lender, DEG, is a subsidiary of KfW andone of the largest European development finance institutions. For more than 50 years, DEG has been financing and structuring the investments of private companies in developing and emerging market countries. DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy, from agribusiness to infrastructure and manufacturing to services. The financial sector is a further focus in order to facilitate reliable access to investment capital locally. DEG’s aim is to establish and expand private enterprise structures in developing and emerging countries, and thus create the basis for sustainable economic growth and a lasting improvement in the living conditions of the local population.

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