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IFC Helps Boost Private Sector Access to Long-Term Finance in Nigeria


In Washington:
Ahmed Badawi-Malik

Phone: +1 (202) 458-7148

Fax:      +1 (202) 974-4384

Email:
Abadawi@ifc.org

In Lagos:

Andrew Alli

Phone: +234 (1) 262 6467

Fax:     +234 (1) 262 6465

Email:
aalli@ifc.org


WASHINGTON, D.C.,/LAGOS, June, 28, 2004 – The International Finance Corporation, the private sector arm of the World Bank Group, today signed an agreement to provide a 10-year revolving loan of up to $20 million to Guaranty Trust Bank, the fifth largest bank in Nigeria in terms of assets. This latest loan raises IFC’s total investment in Guaranty Trust to $40 million so far. IFC’s $20 million loan will be used by the bank to increase long-term financing of local private investment projects.

Jyrki Koskelo, IFC Director for Global Financial Markets, said, "IFC’s provision of a second loan to Guaranty Trust is a signal of the corporation’s encouraging experience in the Nigerian financial sector.” He added, “This long-term relationship establishes the basis for Guaranty Trust and IFC in working together to identify new  ways to service large companies as well as small and medium enterprises in Nigeria.”


Haydée Celaya, IFC Director for Sub-Saharan Africa, noted, "Guaranty Trust is one of the best regarded financial institutions in Nigeria, and has played a key role in improving the quality of banking services that are needed to maximize private sector growth and job creation. This partnership gives IFC an opportunity to support the development and strengthening of the financial sector in Nigeria.” Ms Celaya added, “IFC’s latest investment in Nigeria will also promote confidence amongst other Nigerian banks.”


Segun Agbaje, Deputy Managing Director of Guaranty Trust, remarked, "We are extremely pleased with our successful partnership with IFC. We welcome IFC’s second investment in Guaranty Trust, which comes at an important time in our history. It demonstrates that IFC fully understands Guranty Trust’s vision of becoming a stronger and more diversified financial institution within Nigeria - even as we continue to expand into other west African countries.”


Guaranty Trust is one of the leading generation of Nigerian banks that helped reshape the sector in the past fourteen years. As of February 2004, Guaranty Trust had total assets over US$880 million equivalent, and capital of over US$85 million equivalent.


The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.