Stanbic IBTC Bank has concluded a US$ 90 million line of credit facility from the FMO(NederlandseFinancierings-MaatschappijvoorOntwikkelingslanden N.V).
According to a press statement, the purpose of the facility, consummated recently, 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.
FMO is present as a development finance partner in over eighty different developing countries and emerging markets around the world.
The company’s mandate is to provide long term capital for projects in these countries. Thereby, maximizing development impact with a methodology designed to ensure that FMO’s return on investment is not just financial but also has positive environmental and social effects.
The secondary lender, DEG, is a subsidiary of KfW and one 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.
The Chief Executive of Stanbic IBTC Bank, Mr.YinkaSanni, commenting on the transaction, noted that the commitment of the lenders shows the confidence they have in the Stanbic IBTC brand.
He further emphasized that the facility will enable the bank continue its SME sector growth efforts and move the economy forward.