Connect with us
nairametrics
UBA ads

Corporate deals

IFC invests $100 million in Zenith Bank to support SMEs amid COVID-19

The loan is IFC’s first in Africa under its global COVID-19 fast-track financing support package.

Published

on

Zenith Bank GMD Ebenezer Onyeagwu, Central Bank of Nigeria, CBN's loan-to-deposit ratio policy, Nigerian Stock Exchange NSE stocks, Banks in Nigeria, Deposit Money Banks in Nigeria, Zenith Bank collaborates with fintechs, but insists it is not scared to compete with them, Zenith Bank sets withdrawal limit for customers, as dollar sells for N400, NIGERIA| ZENITH BANK: Revaluation gains support marginal profit growth

International Finance Corporation (IFC), a member of the World Bank Group, today announced an investment of up to $100 million in Nigeria’s Zenith Bank Plc to help it increase support to clients and companies whose cash flows have been disrupted by challenges caused by the COVID-19 pandemic.

IFC’s loan to Zenith Bank is its first investment in Africa through its COVID-19 fast-track financing support package. The funding will help Zenith, an existing IFC client and Africa’s sixth-largest bank, to overcome challenges resulting from ongoing limited access to foreign currency, working capital, and trade funding.

UBA ADS

READ MORE: CBN predicts Nigeria’s inflation to remain double digit

Zenith will support dozens of businesses in Nigeria’s health, pharmaceuticals, food, and trading sectors, allowing them to strengthen operations, maintain employment, and access critical imports of goods, commodities, and raw materials during these challenging economic times.

Ebenezer Onyeagwu, the Group Managing Director/CEO of Zenith Bank, said the “IFC’s support is essential and will help us respond to challenges resulting from the COVID-19 pandemic. It will allow us to support compelling export initiatives and trade financing for critical goods and materials, especially for the medical and pharmaceuticals sectors. Our partnership with IFC is strong and we are committed to its environmental, social, and governance (ESG) requirements.”

GTBank 728 x 90

IFC’s loan to Zenith is part of its $8 billion global fast-track financing package, announced in March to support business activity and preserve jobs in the face of COVID-19. Close to 300 clients have requested support globally.

The closure of borders, shutting of businesses, and reduced global trade-related to COVID-19 are affecting Nigeria’s economy and others across Africa, with the World Bank predicting Africa’s first recession in 25 years.

Eme Essien Lore, IFC’s Country Manager in Nigeria, said, “IFC’s support for Nigeria’s banking sector will help keep the wheels of Nigeria’s economy turning at a time when it is facing a major challenge from COVID-19. Our experience from past shocks, including the global financial crisis in 2008, has taught us that keeping companies solvent is key to saving jobs and limiting economic damage.”

Deal book 300 x 250
onebank728 x 90

Download the Nairametrics News App

Zenith Bank has more than 400 branches in Nigeria and serves over 9 million corporate and individual clients within its global footprint. IFC’s overall portfolio in Nigeria stands at $1.3 billion, in sectors including manufacturing, financial services, infrastructure, and technology.

app
GTBank 728 x 90
Patricia

Emmanuel covers the financial services sector for Nairametrics. Do you have a scoop for him? Well then, contact him via his email- [email protected]

1 Comment

1 Comment

  1. Yahaya Abdullahi Obaje

    June 20, 2020 at 9:15 pm

    Am very interested in oil palm plantation development covering over 40 Ha (400 plots) within Kogi East area. Please, link me to access the financial support/ loan to truly bring this proactive vision into reality soonest. This is a great window for individuals to leverage on.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Corporate deals

Ekiti State secures UN and SHS Holdings partnerships to invest $2 billion to build 50,000 homes

The UN Office for Project Services and SHS will mobilize 3rd party investors to fund the initiative.

Published

on

Ekiti state government imposes curfew, full lockdown, Ekiti state slashes Right of Way charges for Telecom infrastructure from 4500 to 145, Ekiti State Secures UN and SHS Holdings partnerships to invest $2 billion for building 50,000 homes

The government of Ekiti State has announced it has partnered with the United Nations Office for Project Services (UNOPS) and the Sustainable Housing Solutions (SHS) Holdings to build 50,000 homes with renewable energy from 2020-2030 in Ekiti State.

The programme is part of the UNOPS Sustainable Infrastructure Impact Investment (S3I) initiative. “The agreement will help address the housing shortages in Ekiti State with a focus on sustainability and local economic development,” The UN said.

UBA ADS

READ MORE: UAE firm partners DBillions to address housing shortages in Lagos

Speaking on the initiative, Ekiti State Governor, Dr. Kayode Fayemi said, “We are very excited to partner with UNOPS and SHS to deliver affordable housing to the people of Ekiti.”

GTBank 728 x 90

READ ALSO: UAE firm partners DBillions to address housing shortages in Lagos

“This is how our promise of developing Ekiti and improving the lives of the people can be achieved. This partnership has come at an important time, during the COVID-19 pandemic, which has reminded us of the need to deliver quality social infrastructure to the people,” he added.

UNOPS and SHS will mobilize 3rd party investors to fund the initiative which is valued to cost $2 billion.

Deal book 300 x 250
onebank728 x 90

The UNOPS S3I aims to build at least in million homes in multiple countries in 3 continents over the next decade.

 

app
GTBank 728 x 90
Patricia
Continue Reading

Corporate deals

Actis-backed group acquires Nigerian university

The group owns private universities in Morocco, Tunisia, Mauritius, South Africa, Zambia, and Zimbabwe.

Published

on

Actis-backed group acquires Nigerian university

Honoris United Universities, an African education group backed by Actis, has acquired the Nile University in Abuja, its first University acquisition in Nigeria and the entire West African region.

UBA ADS

The CEO, Luis Lopez announced that the deal was closed back in February before the COVID-19 pandemic spread across the continent.

READ ALSO: NCC disburses N100 million to universities for ICT Research

The group owns private universities in Morocco, Tunisia, Mauritius, South Africa, Zambia, and Zimbabwe. Now, it wants to add Nigeria to its portfolio.

GTBank 728 x 90

In 2017, the private equity firm, Actis, set up a $275 million higher education platform for Africa through the Honoris United Universities initiative.

1,700 students have so far graduated from the insitution since it was founded in 2009 and it currently has 3,500 students with a tuition of $6,700 (N2.4 million).

READ ALSO: Growth must be seen in citizens’ lives, AfDB President to African leaders 

Deal book 300 x 250
onebank728 x 90

The CEO said it noticed a demand for high-quality education in Nigeria and plans on expanding its student base to 10,00 in six years.

Honoris will also expand its digital distance learning programmes with the aim of attracting students in Lagos and 2 other cities in northern Nigeria.

READ MORE: Nigeria, Kenya, South Africa attracted $3.9 billion VC deals in 6 years

app
GTBank 728 x 90

 

Patricia
Continue Reading

Corporate deals

FCMB Pensions is planning to acquire AIICO Pension Managers Ltd

Recently, AIICO Insurance has been raising capital through various means. The sell-off could be one of them.

Published

on

FCMB Pensions

FCMB Pensions Ltd, a subsidiary of FCMB Group Plc, has commenced acquisition talks with the shareholders of AIICO Pension Managers Ltd.

The company wants to acquire 70% stakes in AIICO Pension Managers Ltd which is currently held by AIICO Insurance Plc, the parent company. An additional 26% stake in AIICO Pension (which is held by other shareholders) would also be acquired by FCMB Pensions Ltd, thereby bringing the proposed acquisition to 96% stake.

UBA ADS

Separate statements made available to the Nigerian Stock Exchange by both FCMB Group Plc and AIICO Insurance Plc confirmed this development. But neither statement gave any reason for the proposed sale/acquisition.

FCMB Group did, however, explain that the proposed transaction is still subject to regulatory approvals, particularly approvals from the Federal Competition and Consumer Protection Commission as well as the National Pension Commission.

“FCMB Group Plc (FCMB Group) hereby notifies the Nigerian Stock Exchange (“NSE”) and the investing public that its pension management subsidiary, FCMB Pensions Limited (“FCMB Pensions”) has entered into discussions with shareholders of AIICO Pension Managers Limited (“AIICO Pensions”), to acquire the 70% stake held by AIICO Insurance Plc and 26% held by some other shareholders in AIICO Pensions. The proposed acquisition will make AIICO Pensions an indirect subsidiary of FCMB Group Plc,” FCMB Group said in its statement to the NSE.

GTBank 728 x 90

READ MORE: DMO appoints new Government Stockbroker 

Meanwhile, part of the statement by AIICO Insurance Plc said:

“AIICO Insurance Plc (AIICO) hereby notifies the Nigerian Stock Exchange (“NSE”) that AIICO has entered into discussions with FCMB Pensions Limited (“FCMB Pensions”), for the sale of 70% stake in its Pension Management subsidiary, AIICO Pensions Managers Limited (“AIICO Pensions”) to FCMB Pensions Limited.

Deal book 300 x 250
onebank728 x 90

“The proposed sale is AIICO’s stake of 70% and other shareholders stakes of 26% thus bringing the cumulative sale of 96% stake to be purchased by FCMB Pensions. At the conclusion of the proposed sale, AIICO Pensions shall cease to be a subsidiary of AIICO Insurance Plc.”

READ ALSO: FCMB holds virtual AGM as shareholders commend performance, prove Dividend

Recall that AIICO Insurance Plc has recently been raising capital through various means, mainly in a bid to meet the new recapitalisation requirement that was set by the National Insurance Commission, NAICOM. Two weeks ago, the company announced that it had sought the approval of the Nigerian Stock Exchange to list some 4.3 billion ordinary shares of N0.50 each. Perhaps, selling its subsidiary is part of the AIICO’s capital raise options.

app
GTBank 728 x 90

In Q1 2020, AIICO Insurance grew its gross premium by 22.5% to N17.6 billion from N14.3 billion in Q1 2020. Profit after tax also grew by 82.8% to N1.9 billion during the quarter under review.

AIICO Insurance stock opened today’s trading on the Nigerian Stock Exchange at N0.97. Year to date, the share price has gained about 46%, up from N0.60 recorded in January this year.

Patricia
Continue Reading