Stanbic IBTC Secures $90m for SME Developmentsystemdigits.com
Stanbic IBTC Bank has concluded a $90 million line of credit facility from a Dutch development bank, the FMO,.
The purpose of the facility, consummated recently, is for the bank to lend to small and medium sized companies for the financing of projects in the infrastructure sector, which include agriculture, oil and gas, power, ports, and telecom companies within Nigeria.
The facility will run for a term of five years and was provided to Stanbic IBTC Bank by the FMO along with the European Financing Partners (EFP) and DEG, European development finance institutions.
The FMO is present as a development finance partner in over 80 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, maximising development impact with a methodology designed to ensure that the FMO’s return on investment is not just financial but also has positive environmental and social effects.
The chief executive of Stanbic IBTC Bank, Mr Yinka Sanni, commenting on the transaction, noted that the commitment of the lenders shows the confidence they have in the Stanbic IBTC brand. He further emphasised that the facility will enable the bank continue its SME sector growth efforts and move the economy forward.
The chief information officer of the FMO, Linda Broekhuizen, said, “This second facility to Stanbic IBTC Bank is further testimony to the long and good relationship between the Standard Bank Group and the FMO.