Stanbic IBTC Bank said it has secured a $90 million (N18 billion) line of credit facility from the FMO (NederlandseFinancierings- Maatschappijvoor Ontwikkelingslanden N.V). A statement from the bank yesterday explained that the purpose of the facility, consummated recently, was for the financial institution to on-lend to small and medium sized companies for the financing of projects in strategic sectors.
The sectors include agriculture, oil and gas, power, ports, telecom, power, among others within Nigeria. The facility would run for a term of five 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 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.
Chief Executive of Stanbic IBTC Bank, Mr. Yinka Sanni, while commenting on the transaction, noted that the commitment of the lenders showed the confidence they have in the Stanbic IBTC brand. He further emphasised that the facility would enable the bank continue its SME sector growth efforts and move the economy forward.